I have a LLC, filing as S-Corp. I am one of two shareholder's. Current ownership split, is 70% for me, 30% for my business partner. As part of our agreement, this year I was the only person to contribute money into the business as capital.
This year we had a $7,000 loss. Because I was the only one that contributed capital, does that loss go only to me? Or is it broken out 70/30? In other words, does my business partner who did not invest capital into the business this year, get a benefit of a 30% loss being passed through to their own taxes?
