Hello All,
I created an LLC with my partner contributing $9,900 for 99% share and I contributed $100 for 1% share. So my understand that the beginning % capital would be 99% and 1% respectively in Box K of Schedule K-1.
My partner and I took different cash distributions from the company. With all the income and distributions, my partners capital account balance is $5000 where as mine is $200.
So should the ending Capital % in Box J be updated to $96% and 4% respectively OR would it remain 99% and 1% as per profit share agreement?
Thank you in advance for all you help.
