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Level 1

Single Member LLC investing in another LLC

Hello,

I own a Single Member LLC investing and my business chose to make an investment in another LLC (in return for shares in the other LLC). What is the best way to track/mark this transaction within intuit quickbooks?

Best,

3 Comments
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Community Champion

Single Member LLC investing in another LLC

Your investment in another company would be considered a long term fixed asset (whose value might change as your equity there changes) your LLC will record income received on a K-1 from the second LLC which will combine with your own company prior to pass through to your personal account.

Highlighted
Level 1

Single Member LLC investing in another LLC

Thanks, I appreciate taking the time to provide this info. Is it necessary to create an asset account named for the investment and use that account as the expense (reason) for the payment? Any advise on what's the best way to categorize this transaction within Quickbooks (Expense Vs non-expense) Vs non-categorizing this transaction to begin with if it it not considered an expense. Could you please elaborate? Appreciate your help.

Highlighted
Level 1

Single Member LLC investing in another LLC

Thanks, I appreciate taking the time to provide this info. Is it necessary to create an asset account named for the investment and use that account as the expense (reason) for the payment? Any advise on what's the best way to categorize this transaction within Quickbooks (Expense Vs non-expense) Vs non-categorizing this transaction to begin with if it it not considered an expense. Could you please elaborate? Appreciate your help.

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