[WSBAPT] Formation of LLC--how to contribute assets

[Doug Owens]

Dear Dave, the important thing for these clients is to treat the LLC as a separate entity.  That means when they make a capital contribution the LLC gives them a receipt and shows the contribution as an increment to their capital accounts on the books of the entity.  The initial operating agreement should state the initial capital contributions of the members, and those should be manifested in bank deposits in the LLC’s account.  I hope this is helpful.  Yours truly, Doug Owens

On Apr 18, 2019, at 1:21 PM, Dave Culbertson <dculbertson at culbertsonlawoffice.com<mailto:dculbertson at culbertsonlawoffice.com>> wrote:

Hello, Listmates.

I’m working with some clients who want to form an LLC to run a small business. Each wants to pitch in 10,000 to buy some equipment, etc. It’s not my normal area, but I’m giving them the general lay of the land.

How does one achieve that—by simply stating it in the LLC agreement? Or is there some similar legal ritual you have to do to contribute money or materials to an LLC? For comparison, if it were a piece of land, you would have to deed it to the LLC, I think. I don’t know if there is some other mechanical step for assets like money or materials.


Best Regards,

Dave Culbertson

The Law Office of Davisson Culbertson, PLLC
19909 Ballinger Way NE
Shoreline, WA 98102

Office Line: (425) 252-0300
Cell:  (206) 478-8134
FAX: (866) 867-7796

dculbertson at culbertsonlawoffice.com<mailto:dculbertson at culbertsonlawoffice.com>




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