Accounting for an LLC as member of another LLC

Anyone?  Bueller?  Bueller?

Good afternoon, @Lori-RA. 

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Thank You!

How do I get/track amounts into the LLC-A/Investment in LLC-B other asset account?  I'm thinking that this is the value in the R/E account of LLC-A, yes?

@Lori-RA 

The 'Investment in LLC-B' other asset account reflects the investment made by LLC-A in LLC-B.  LLC-A had to invest something in LLC-B for this account to exist.  For example, if LLC-A made an initial cash investment of $50K in LLC-B, then the Investment in LLC-B should have started with a balance of $50K.  That $50K is the basis of your investment in LLC-B.  Nothing increases that balance unless LLC-A invests more into LLC-B, or if LLC-B doesn't distribute its profits to LLC-A.  In both cases, the balance will increase in Investment in LLC-B with the offset to Investment in LLC-B Revenue.  Investment in LLC-B other asset will decrease if you sell a portion of your interest in LLC-B or if LLC-B has a loss. 

If LLC-A didn't contribute anything to LLC-B, then the Investment in LLC-B other asset account shouldn't exist.     

When LLC-A receives its share of income from LLC-B, that is booked as cash, with the offset being the Investment in LLC-B revenue account.  That has no impact on the Investment in LLC-B other asset account.

R/E is indirectly related to the Investment in LLC-B other asset account.  R/E of LLC-B decreases as a result of the payment made to LLC-A, and Revenue from Investment in LLC-B increases R/E of LLC-A, but only because those payments decrease/increase net income for the respective LLC, which QB automatically closes to R/E at year-end. 

@Lori-RA 

"Nothing increases that balance unless LLC-A invests more into LLC-B, or if LLC-B doesn't distribute its profits to LLC-A. In both cases, the balance will increase in Investment in LLC-B with the offset to Investment in LLC-B Revenue."

CORRECTION: The offset is to Investment in LLC-B Revenue only if the profits aren't distributed.  If LLC-A invests more in LLC-B, then the offset is the Investment in LLC-B other asset account, thereby increasing the balance.  Sorry about that.  

OK, so if LLC-B holds R/E for LLC-A (because not all revenue share due to LLC-A has been distributed) it will be reflected only as a balance on LLC-B's accounts and not in any account of LLC-A, correct?
If so, then frankly that seems a bit odd to me.  Let's say that LLC-A's rev. share from -B was 50k for a given year but only paid out 30k leaving 20k.  That 20k would not appear anywhere on -A's balance sheet and someone reviewing that would not get a full picture of the value of LLC-A as a whole entity.

Thanks for your help!

@Lori-RA 

"Let's say that LLC-A's rev. share from -B was 50k for a given year but only paid out 30k leaving 20k. That 20k would not appear anywhere on -A's balance sheet and someone reviewing that would not get a full picture of the value of LLC-A as a whole entity."

I did mention in a previous post that "Nothing increases that balance unless LLC-A invests more into LLC-B, or if LLC-B doesn't distribute its profits to LLC-A. In both cases, the balance will increase in Investment in LLC-B with the offset to Investment in LLC-B Revenue."

So, if A's share of B's profits is $50K, but only $30K is paid in cash, the remaining $20K increases the 'Investment in LLC-B' other asset account.  The journal entry looks like this:

Hope that helps.