Question

Where to input capital contribution of the S-corp into and as a member's LLC capital account ?

Forum|Forum|5 years ago
March 10, 2021
1 reply
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I personally own 100% shares of S-corp.

S-corp is a member of LLC and owe 98% of shares.

I loaned money to the S-corp and input in TurboTax as a "owner loan"

Those money S-Corp reinvested into LLC s-corp's member capital account.

Where do I input it on Scorp accounting, because right now I have a loan as a "net income" and investment from S-corp into LLC as a "total expense", "capital stock"?

TurboTax Business Windows

M-MTax

Are you doing the balance sheet and is it for the LLC or the S corp? For the S corp it's a loan from shareholders....the money you lent to it.....and the funds invested in the LLC is under "other investments" for the S corp.

R

romanov33Author

So, for the S-corp it is loan, and for LLC it is "other investments" as a assets?

Also, if LLC paid back some profits to S-corp, it is distribution for LLC but what would be that payment for S-corp?

Thank you very much!

M-MTax

Yes to the first one and if the S corp is an LLC member then it would share in profits if you have it set up that way.....then the S corp would get a K-1 from the LLC for its share.