ABC LLC is a multi-member LLC. It is the "sole" member of DEF LLC but I understand that DEF LLC is still a multi-member LLC to the IRS. Where I'm at a loss is the funding of DEF LLC. ABC LLC wrote a check for $10k to fund the start of DEF LLC. My two questions are
1. In Turbo Tax, I'm creating the new DEF LLC and it's asking for member contributions. Am I splitting it between the 2 members of ABC LLC or do I put somewhere that the $10k came from ABC LLC?
2. What is that $10k in relation to the taxes for ABC LLC? Is it a business expense? A distribution to the members and then the members contribution to start DEF LLC (perhaps answering question 1)?
Thank you
