Is this how to transfer physical assets to sole proprietor LLC in Quickbooks Online?

Alan Coley · ‎March 24, 2019

I am new to quickbooks and am using the Online Essentials version. I need to transfer personal photo equipment to my LLC, which was established in June 2018. My goal is to donate the equipment, not sell it the LLC.

Proposed steps:

Create vendor account in my own name

Create a bill for each item to transfer from myself as payee and enter June 1, 2018 as bill date (does the date matter as long as it is after LLC was formed and before year end?)

On first line select appropriate expense or fixed asset category, description of item, and fair market value for the amount

On the second line, select Owner Investment as category, asset donation as description, and negative fair market value for the amount

Would this work?

Thanks

john-pero · ‎March 24, 2019

You are partially on the right track, you as member of LLC make an equity contribution of fmv and accumulated depreciation into the LLC. It is as simple as that.

Let's say the equipment cost you $10,000 and you have already depreciated it by $3000. You would contribute an asset valued at $7000. A zero sum Expense will suffice. Line 1 new asset equipment $7000 line 2 member contribution -$7000. Net 0.

You could enter $10k , -$3k for accumulated depreciation and -$7k for contribution.

You also do not need to enter a name in the Expense although you can.

View solution in original post

john-pero · ‎March 24, 2019

You are partially on the right track, you as member of LLC make an equity contribution of fmv and accumulated depreciation into the LLC. It is as simple as that.

Let's say the equipment cost you $10,000 and you have already depreciated it by $3000. You would contribute an asset valued at $7000. A zero sum Expense will suffice. Line 1 new asset equipment $7000 line 2 member contribution -$7000. Net 0.

You could enter $10k , -$3k for accumulated depreciation and -$7k for contribution.

You also do not need to enter a name in the Expense although you can.

Alan Coley · ‎March 24, 2019

Thank you

NHR · ‎August 04, 2021

ok this is exactly my question but can you walk me through the steps on the online system? Am I doing this in chart of accounts? do I need to itemize anywhere? thank you

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Is this how to transfer physical assets to sole proprietor LLC in Quickbooks Online?