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Level 3
posted Feb 17, 2021 7:17:31 AM

What information do I put into Enter Capital Account Information? I have a new LLC started by me and my brother and not sure what would be listed in the Opening Capital

I am filling in the section for Enter Capital Account Information for a LLC based partnership that I received a K-1 for.  Its asking for Opening Capital Account, Capital Contributed During 2020, etc., Ending Capital Account.

I am not 100% sure what to put into these fields.  While I did pay for the LLC formation and put $100 into opening a bank account, that is about all the money I put into the business, the other partner put in $5 for his ownership in the business.

What am I supposed to put in these places.  Thanks in advance

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1 Replies
Expert Alumni
Feb 17, 2021 7:54:38 AM

You can just click through the screens for Capital Account Information, leaving them blank.  Although it is better to keep track of the capital account balances.

 

A partner's opening capital account balance is generally the value of his contribution to the partnership.  Your capital account consist the $100 you put in the bank account plus the value of any property you contributed (computer, furniture, etc.).  The other partner's capital account is the $5 plus the value of any property he contributed.

 

Since you are just beginning the LLC I recommend you see an accountant to get everything set up the correct way.

 

For background, see: