Hi, an attorney created an S-Corporation, a Limited Partnership and a Living Trusts for myself as well as a Living Trust for my wife, primarily for liability and estate purposes.
My Living Trust owns 49% of the S-Corp, my wife's Living Trust owns 49% of the S-Corp, and the remaining 2% of the S-Corp is owned by relatives.
The Limited Partnership has 2 partners, my Living Trust is a 99.5% partner and the
S-Corp, which is the General Partner, is a 0.5% partner.
I am the President of the S Corp.
Unfortunately the attorney did not explain any of this to me and is no longer available so I would appreciate a little (probably a lot of) HELP.
The LP has no employees, does not manufacture or sell "a product< its' only "business" is buying and selling stocks, bonds, ……. and I would appreciate a little help in setting-up "the books" for the LP.
I used my own personal funds to pay for startup cost (legal fees, filing fees,…) for the LP and also transferred some of my personal assets (several stocks) so that the LP had assets to work with and plan to repay myself for these financial outlays.
My question is, how do I categorize the costs that I paid (from my personal funds) to get the LP "up and running"? Would these costs be a loan to the LP, a contribution to the LP, or ??????? Again, I plan to repay myself when the LP has its' own funds (i.e. when the assets that I transferred to the LP appreciate)
ANY help that you can offer would be greatly appreciated.
Thank you,
Bob
My Living Trust owns 49% of the S-Corp, my wife's Living Trust owns 49% of the S-Corp, and the remaining 2% of the S-Corp is owned by relatives.
The Limited Partnership has 2 partners, my Living Trust is a 99.5% partner and the
S-Corp, which is the General Partner, is a 0.5% partner.
I am the President of the S Corp.
Unfortunately the attorney did not explain any of this to me and is no longer available so I would appreciate a little (probably a lot of) HELP.
The LP has no employees, does not manufacture or sell "a product< its' only "business" is buying and selling stocks, bonds, ……. and I would appreciate a little help in setting-up "the books" for the LP.
I used my own personal funds to pay for startup cost (legal fees, filing fees,…) for the LP and also transferred some of my personal assets (several stocks) so that the LP had assets to work with and plan to repay myself for these financial outlays.
My question is, how do I categorize the costs that I paid (from my personal funds) to get the LP "up and running"? Would these costs be a loan to the LP, a contribution to the LP, or ??????? Again, I plan to repay myself when the LP has its' own funds (i.e. when the assets that I transferred to the LP appreciate)
ANY help that you can offer would be greatly appreciated.
Thank you,
Bob
