LLC Membership interest (share value)

[Liam OSullivan]

Hi there ,

So I’ll soon be closing on my first deal, it is a vacation /ski rental , numbers are as follows .

Sale price: 130,000

D.Payment 26,000

Renovation 25000

Arv :160,000

 Annual rental 15,000

Now for the part where I'm looking for info , I am buying the property in my name with a mortgage. All the cash I am using is coming from my LLC for DP and rehab etc .

The reason I have this LLC is I had money in a self managed superannuation fund (401K) in Australia . I wanted to use this money in the US where I now live , the only way to do this was to set up an LLC and issue shares from my LLC here to my 401K In Australia.

So in this LLC there is $51,100, all of the money except for the $100 came from the Aussie 401K

I now need to issue shares  to the 401K. How do I put a percentage on  the membership interest of these shares ? I was thinking 4 shares totalling 40% membership interest and each share valued at $12,750? 

Leaving the other 60% in the LLC for me ,( I am the manager and only member )

I was just going to write all this in the membership interest ledger in the LLC operating agreement and also issue membership certificates.

The next task is this, at the end of the year I need to value those shares and show the tax office in Australia that they have increased in value, EG: $51,000 to $57,000.

How do I put a value on those shares when the cash that backs them has been taken from the LLC and invested in the house in my name leaving no money in the LLC account except for rental income which will be earned and lodged directly back to the LLC .

I was going to increase the value of them by forced  equity and rental income (cashflow is $6000 after mortgage/expenses . 

I am not sure how to link the increase in value from the property and income etc back to the LLC and in turn show the Australian tax people the money has been invested properly .

I realise I need to see a CPA about this but it would be brilliant to get some information so I know what I’m talking about when I see them .

Thanks for reading .

Regards Liam O Sullivan