USA Contributions to a multi-member LLC made from personal banking accounts.

[HonestEnterprenuer]

We have set up at multi member LLC in 2016 with two members. This is a franchisee operation and in 2016 a significant amount was made paid to the franchisor. This payment was made from the personal accounts of each of the member of the LLC.

The business will be operational by March 2017. The business bank account was also set up in February 2017. Now we are funding the business bank account from our personal funds.

How do we claim the franchisee fee that was paid in 2016 from our personal accounts as an expense when we file the taxes now.?

 

[Tyson]

Credit each partner's Capital account. Debit Franchise Fees expense account. (or whichever similar accounts you use)

An accountant will be able to help you file your taxes accurately

 

[Houston Tax Attorney]

You will also want to document it as a contribution.