cash member contributed to LLC

Forum|Forum|1 year ago
March 12, 2025
1 reply
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I started a business and I purchased equipment using my own cash. Does this qualify as 'cash member contributed to LLC' or do I put this cash purchase elsewhere? TYIA!

TurboTax Business Windows

MAK70

It would technically be a contribution of property. Depending on the tax structure of your LLC, there may be advantages from a debt standpoint if it is financed and there are basis and depreciation choice considerations. If it is a SMLLC, it essentially can be a seamless cash contribution that was used to purchase the asset.

nickmarksthespotAuthor

Thank you for your reply. The equipment was purchased outright and we're a 2 member LLC.

RobertB4444

You can just show it as a cash contribution for the value of the equipment - especially if the equipment is now owned by the business.

As @MAK70 pointed out, though, you also have the option to have the business make payments to you or finance the equipment to it. You should look into all of your options.

@nickmarksthespot

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