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