Question for McWagner

I wanted to ask a question based on a comment you made on another thread but did not want to get yelled at for thread hijacking! LOL

Anyone else is welcome to comment.

I am setting up an LLC to transfer a rental house that I have. Your post mentioned that anonymity is not important. We operate out of a home office so it is OK to form the LLC using my home address right?

The partners/members will be me and my husband. We plan on capatilizing the business in increments over the next few months. Will we both be 50% owners or are husband and wife treated like 1. Do we each have to put in capital in equal amounts (seems silly) or is 1 check good?



It will help Mark give you a more definitive response if you tell us whether you live in a community property state. In which state will you be registering your LLC?

We are in NY.

A husband and wife can enter into an entity as seperate individuals, and classify the entity as a corporation or partnership if they choose. They can also choose to tax the entity as a sole proprietorship, with one spouse being the proprietor.

you would each need to make a separate capital contribution.

community property only becomes an issue if you pay taxes as a sole proprietor (joint income rules) or split up. And in that case it’s gonna be a tangled mess anyway.

I have a call into my accountant to see how we should set it up from a tax pespective.

If we are going to be taxed as a corp or partnerrship. How do we both contribute? I mean we only have 1 check book. This may be a dumb question.


a single check is fine, but in the LLC books, record it as two separate capital contributions.