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New Member
posted Sep 5, 2022 7:03:53 AM

member percentages in a family owned LLC

How do I change member percentages in an LLC? Since the members are all family, are there any extra forms or tax consequences? We are updating our operating agreement.

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2 Best answers
Level 15
Sep 5, 2022 7:31:21 AM

Level 15
Sep 5, 2022 10:16:50 AM

Correct; there are other considerations beyond how to enter the figures programmatically.

 

If this is a larger operation, professional guidance is recommended.

10 Replies
Level 15
Sep 5, 2022 7:10:58 AM

How? Are you using TurboTax Business?

 

You first need to indicate that there was an ownership change in the About Your Business tab.

Level 15
Sep 5, 2022 7:13:30 AM

In a partnership or S-Corp switch to the forms mode to make any changes you need to make.

New Member
Sep 5, 2022 7:21:49 AM

We do but I tried doing an test on our 2021 return but it does not ask me to change the %'s anywhere.  I read all the other posts where they also did not get the question to change the %'s

New Member
Sep 5, 2022 7:22:16 AM

4 member LLC

 

New Member
Sep 5, 2022 7:23:49 AM

I did that per other suggestions in this form but it does not carry through.  I know other posted after you override the %'s, I would need to manually calculate changes for the K-1.

Level 15
Sep 5, 2022 7:31:21 AM

New Member
Sep 5, 2022 7:51:45 AM

I did pick that and made the second date 1/2/21. It is having an flowing through.  It is not very user friendly to change the %'s

Level 15
Sep 5, 2022 9:57:16 AM

even though only family members are involved changing member %'s may have tax consequences other than on just changing the amounts allocated. 

Level 15
Sep 5, 2022 10:16:50 AM

Correct; there are other considerations beyond how to enter the figures programmatically.

 

If this is a larger operation, professional guidance is recommended.

New Member
Sep 5, 2022 3:54:32 PM

Thank you everyone.  That is why I was using 2021 as a test so we could be prepared if there are tax consequences.  

 

Since Turbo Tax does such a great job it would have us prepared if we need to pay in extra taxes.

 

Any help in getting 2021 test to work is appreciated.