How to record buying an interest in an LLC?

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brec
brec Member ✭✭
edited May 2023 in Investing (Mac)
If I invest in an LLC as a (limited) member, how would I record that? I have a Private Investments account that I'd prefer to use rather than creating a new separate account -- to minimize clutter.

Quicken Mac Premier 6.12.5

Best Answer

  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta
    Answer ✓
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    I create an asset account for each LLC, purely to include some approximate value of the holding in a net worth statement. Entries of category 'adjustment' can be made in the asset account to change the value from the cost basis to any subsequent appraised or otherwise knowable value.

    If you have multiple such holdings that you want tracked in a generic Private Investments account, there's no reason that can't be done using a Payee of the LLC/etc name. Breaking down values per-asset would then be a report on that account subtotaled by Payee.

    The initial investment would be a transfer out of whatever account you're transfering funds to the LLC with the asset account as the target of the transfer. This shows the decrease in the cash value of some account and the increase in asset value of the account being used to record the LLC holding.

    (You could fake it, of course, as a non-listed security in an investment account, but that would lead to all kinds of issues.)

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

Answers

  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta
    Answer ✓
    Options

    I create an asset account for each LLC, purely to include some approximate value of the holding in a net worth statement. Entries of category 'adjustment' can be made in the asset account to change the value from the cost basis to any subsequent appraised or otherwise knowable value.

    If you have multiple such holdings that you want tracked in a generic Private Investments account, there's no reason that can't be done using a Payee of the LLC/etc name. Breaking down values per-asset would then be a report on that account subtotaled by Payee.

    The initial investment would be a transfer out of whatever account you're transfering funds to the LLC with the asset account as the target of the transfer. This shows the decrease in the cash value of some account and the increase in asset value of the account being used to record the LLC holding.

    (You could fake it, of course, as a non-listed security in an investment account, but that would lead to all kinds of issues.)

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

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