Move funds to new startup company

@CrazyKZ777 

What type of businesses are these?  Sole proprietorships, S-corps or ??

Both accounts are LLC's. 

@CrazyKZ777 

How are the LLCs taxed?  As sole proprietorships, S-corps, or ???

Both are sole proprietorships. 

@CrazyKZ777 

Since they are both considered sole proprietorships (SP), you can freely transfer money from Co. A to Co. B.  So, it's up to you if you want to make a one-time entry or create an inter-company loan.  If you want to make a one-time entry, in Co. A, assign the payment made to your Owner's Draw equity account.  In Co. B, record the deposit to your Owner's Contribution equity account.  If you want to create an inter-company loan because you intend to repay the money, then set up a receivable in Co. A and a payable in Co. B.    

Perfect. Thank you!

Using the distribution/contribution method, there would not be any tax liability, is that correct?

@CrazyKZ777 

"Using the distribution/contribution method, there would not be any tax liability, is that correct?"

Correct.  That's why it was important to know if these were SPs or corporations.  Good luck with the businesses.