Welcome back! Ask questions, get answers, and join our large community of tax professionals.
Showing results for 
Search instead for 
Did you mean: 

Member Capital Contribution

Level 1

When setting up an LLC my clients owed someone $100,000. Instead of paying them, they gave them "economic interest ownership" and listed this person's capital contribution as $100k in their paperwork. Since they didn't actually receive $100k how would I handle this? 

0 Cheers
1 Comment 1
Level 15

Sounds like a distribution to your client.