If it was a sole membership LLC, and someone wanted to give me money to get it going, would I need to have this person sign something to show where the funds came from? Would these funds be taxable?
If I Receive Funds From Someone To Help Get My Llc Started, How Or Would I Even Need To Report The Funds?
Posted by Matt Carlson in Fund Questions on 03 31st, 2009 | 3 responses
“Gifts” are taxable to the giver (not the person who gets the gift) if over $11,000. They could give you $11K and then you could put in that money as initial capital for the business. If $11K or under, no tax is due from giver and the LLC is not taxed for a capital contribution from a member. Hey, see a CPA or Enrolled Agent on this, it is worth the consult fee..
Third option: Limited partner.
Either they make you a loan (and you owe them interest) or they make you a gift and you add to your capital. Which is it?