Monica,

You may not have seen my post.  I've re-posted for you or anyone else that wants to contribute.

I'm a member in newly formed LLC with Sub-S selection for tax purposes. We acquired an existing business at no cost. The existing business has paying customers, some furniture and equipment, no other cash, assets or debt.

What entries should I make on the balance sheet in the beginning? There is no debt or liability, only equity in the LLC. The company acquired has a Fair value based on future income from existing customers. I'm assuming there should be an entry on the Asset side and another corresponding entry on the Owner's Equity side. What entries should be made?

Thanks,

Wayne