What is my share of debt?

[Alan-Ford]

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!

[George4Tacks · Accepted solution]

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. 

[IRonMaN]

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.

[abctax55]

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

[qbteachmt]

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.