So I finished paying off some business equipment. The title can now be transferred to my sole proprietor business. I want to turn that business to a LLC. If I ask the lender to transfer the title directly to the LLC, is that treated as a contribution by the LLC owner, me? How would this affect my taxes if I am the only LLC member? Thank you.
USA Is this still treated as a contribution?
- Thread starter daysgoby
- Start date
It should not affect your taxes currently especially if you elect to be treated as a disregarded entity; the default status for a single member LLC.
I am not sure how you are using the term contribution. I am assuming you mean capital contribution. Before reading the body of your post, I thought you were going to be asking about a charitable contribution.
It is a capital contribution. But again if you elect to be treated as a disregarded entity, there should be little to no current tax impact.
You should consult with your CPA about which election is best for you. If you do not have a CPA relationship but you have a business, chances are you are stepping over dollars to save or pick up pennies.
I am not sure how you are using the term contribution. I am assuming you mean capital contribution. Before reading the body of your post, I thought you were going to be asking about a charitable contribution.
It is a capital contribution. But again if you elect to be treated as a disregarded entity, there should be little to no current tax impact.
You should consult with your CPA about which election is best for you. If you do not have a CPA relationship but you have a business, chances are you are stepping over dollars to save or pick up pennies.