topic Re: Initial capital contribution for an LLC in Business & farm

Initial capital contribution for an LLC

tle0880 — Mon, 09 Mar 2026 05:41:43 GMT

I started my multimember LLC in 2021. In doing the taxes, I entered the initial profit/loss/capital for each member as 0% & ending capital profit/loss/capital for each member as 50%. [There are 2 of us.]

However, on the actual K1 itself, why does it show up on our K1 as initial profit/loss/capital of 50% when it should be 0%? How can I fix this? I have gone back to the TurboTax section several times where it's asking for initial profit/loss/capital & it's always shown as 0% which doesn't translate to the final K1 form.

Thank you.

Re: Initial capital contribution for an LLC

Anonymous_ — Fri, 18 Feb 2022 19:47:25 GMT

Do your K-1s look like the screenshot below? Check your Partner Information Worksheet in Forms Mode.

Re: Initial capital contribution for an LLC

tle0880 — Sat, 19 Feb 2022 00:00:57 GMT

Yes, but shouldn't the initial profit/loss/capital start out with 0 if it's a new LLC?

How do I check the Partner Information Worksheet in Forms mode?

Re: Initial capital contribution for an LLC

Anonymous_ — Sat, 19 Feb 2022 00:04:01 GMT

Yes, except a member has to start with a percentage if that member made a contribution to the LLC or the member's share is specified in the articles of organization (or agreement).

Re: Initial capital contribution for an LLC

Rick19744 — Sat, 19 Feb 2022 00:40:36 GMT

See the snippet from the Schedule K-1 instructions to section J:

Generally, the amounts reported in item J are based on the partnership agreement. If your interest commenced after the beginning of the partnership's tax year, the partnership will have entered, in the Beginning column, the percentages that existed for you immediately after admission.