If a founder is contributing IP to an LLC and receives a captital account equal to the value of the IP, is the founder liable for taxes on the amount in the capital account?
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(Assuming you're in the US, because you didn't mention jurisdiction) No, if the "check-the-box" election is to treat the LLC as a disregarded entity. It becomes the basis of the contributor in the partnership. If elected to treat the LLC as a corporation, tax consequences may be more complicated. Talk to a local tax adviser. |
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