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Level 2
November 15, 2025
Question

Switching to LLC when I am already selling

  • November 15, 2025
  • 1 reply
  • 47 views

I am currently selling online with goods and would like to switch to LLC. I am trying to understand the assets transfer portion.

For example, if I own $4,000 parts and want to transfer to my LLC, would LLC purchase the good from myself and mark as inventory with cost under the LLC? I would then file an income tax because I sold the items, correct?

 

Or could it be mark as lose only when the item is sold?

1 reply

M-MTax
Level 15
November 15, 2025

The transfer from you to the LLC would be a capital contribution.

 

You might want to consult with a qualified professional in your area.