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QUESTION from Joe:
Hi Guys. In need of some investor books help. here are my questions:
1) In need a video/instructions for creating intercompany transactions.
For example, we have multiple LLC and each LLC has its own tax return.
If all owner capital contributions are deposited into LLC1, then are transferred through bank transactions to LLC2 or LLC3, how do I set up my chart of accounts for that transfer?
2) At year end, how do I clear out the Income Statement for all the entities to Retained earnings?
Remember the Income Statement is organized by class (not separate accounts for each property), so how does that end of year Income Statement get put in the proper retained earnings accounts?
QUESTION from Steve:
Would you please give me some guidance.
To make sure I am of the correct mindset in reading the Investorbooks manual ... on page 86 you mention if we are using single member LLC's (which are a pass through entity as fax as the tax prep) we set them up on one set of Books ... then does that mean that if we are not using single member LLC's and instead have a Corp that files its own return and a Multi-member LLC(s) that files its own 1065 that these will each have their own set of Investorbooks?
And ... if the Corp is on a fiscal year versus Calendar year end for taxes, does that make a difference as the way we would log the Fixed assets may be better using Fiscal Year versus Calendar year which may cause havoc with the other entities.
Thank you Mike,