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April 17, 2022
Question

Single Member LLC receiving family capital contributions

  • April 17, 2022
  • 1 reply
  • 0 views

Hi there,

 

I have a small farm that I set up as a single-member LLC (disregarded entity). I received some funding from family since it is a start-up farm. This funding was on a donation basis, not an investment with expected returns. How do I enter these capital contributions in my taxes?

 

Thanks,

 

Jordan 

    1 reply

    ColeenD3
    April 17, 2022

    There is no such thing as a capital contribution to your LLC. Your disregarded entity is the same as you personally. This is a gift. If anyone gave you more than $15,000, they need to file a Form 709.

    April 17, 2022

    Ok, so do I need to account for that in any way on my own taxes?

    April 17, 2022

    The gift is non taxable for you and you do not enter it on your tax return.

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