I'm in the process of taking over as (unpaid volunteer) manager for a 26 member angel investment fund LLC, due to its management vendor (Assure) suddenly shutting down this month, leaving us and many other investment fund special purpose vehicles (SPVs) scrambling.
In April 2022, our Delaware series LLC (of a separate master LLC) received a public stock distribution from its sole portfolio company as a result of an IPO. All shares received were "passed through" to the LLC members, with most distributed as stock transfers to 18 members, and the rest liquidated and distributed as cash to the other 8. Prior to these member distributions, a small portion of shares were liquidated and used to pay brokerage expenses.
Questions are:
Can TurboTax Business be used for this LLC's 2022 tax year reporting of these share and cash distributions, and K-1 generation for the investor members?
What form(s) does the series LLC need to file to the IRS? I assume the receipt of the public shares, partial liquidation, and cash and share distributions reflect taxable events.
What documents/info are required from the portfolio company and brokerage in order for the LLC to do its tax reporting? My expectation is that either or both of those entities will make some filing to the IRS reporting the stock distribution to our LLC.
Note, this series LLC will be dissolved after this tax reporting is completed, as it holds no remaining assets, it existed solely for this lone startup investment, which is exited and complete.
Thanks for any/all guidance.
