Alan-Ford
Level 1
‎12-06-2019 06:48 PM

Hi everyone,

I apologize if I am posting this in the wrong place. And I hope some of you are still awake and can help me figure out something that's probably clear as day to you. My business partner and I have an LLC and I am withdrawing from it. The LLC has a $10K line of credit balance, and $8K debt on the credit card, for a total of $18K.

My partner's position in the firm is negative at -$16K. My position is positive at $6K, based on invoices I have never been paid. We have assets (computers and other small gear) valued at roughly $3K.

Now that I am withdrawing, we're trying to divide the debt. Based on the numbers above, what is my share of the LLC's debt?

I come up with the number of $4K, excluding the value of our assets. Am I right?

Thanks a lot!

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George4Tacks
Level 15
‎12-06-2019 06:48 PM

I believe you are correct. You are in the wrong place. I doubt you use Proseries. If I am wrong, I apologize, but suggest you speak with your PAID tax professional to get an answer based upon ALL of the facts and circumstances of this situation. 


Answers are easy. Questions are hard!

View solution in original post

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IRonMaN
Level 15
‎12-06-2019 06:48 PM

I think you are mushing equity and debt together, but it really doesn't matter what anybody here says your share of the debt is.  I think you and your soon to be ex-partner need to come to a mutual agreement on what kind of dollars it's going to take to allow you walk away from the partnership.


Slava Ukraini!
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abctax55
Level 15
‎12-06-2019 06:48 PM

In addition to talking to a professional tax, a consult with an attorney might be a good idea.

HumanKind... Be Both
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qbteachmt
Level 15
‎12-06-2019 06:48 PM

This statement doesn't really make sense to me: "My position is positive at $6K, based on invoices I have never been paid."

You don't invoice your own entity.


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