Correct.
Will I have to report this transfer on my personal taxes?
The technically correct response is 'Yes". The LLC should "technically" allocate a Section 704(c) allocation to each member. Since it is just the two of you, and you both contributed the same percentage, the end result will be no different.
However, this will be an issue as noted previously if you should bring in another member of if one of you should leave. If that occurs, you should consult with a tax professional to help with the mechanics of the allocation.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
