Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Members' Capital Accounts - LLC

Bottom of Page

1 to 1 of 1

  1.  
  1.  
    I hope someone can help with how to clasify what I would refer to as Sweat Equity.

    Suppose a member in a LLC works 500 hours at a rate of $28.00 dollars per hour (normal for this position in this trade). He receives no cash but gets a percentage of ownership in the LLC (FMV equal to dollars earned). Can I directly credit his capital account $14,000.00? If so, can I clasify it as Cash Contributed or?? If not, do I have to pay him wages, withhold taxes and then he gives the balance of the cash back as Cash Contributed?

1 to 1 of 1

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?