Gourmet Provisions Intl Corp (GMPR)

[The GidDy uP Kid]

LLC

When you form an LLC and become an owner, you put money into the business to get it started. An owner of an LLC is called a "member," and the owner is not an employee.

Your contribution to the LLC as a member is called your capital contribution, your contribution to the ownership. This capital contribution gives you a share in the LLC, and the right to a percentage of the profits (and losses). If you are the only member, you have 100% of the ownership. If the LLC has several owners, each owner's share is determined by agreement, usually a formal operating agreement.

Member contributions may be made in cash or non-cash (property, for example). Property contributions must be listed and described and the members must agree on the fair market value of non-cash contributions.
How is my LLC ownership recorded?

Once you have put money into the LLC, your capital contribution and the contributions of other members, is shown in the LLC's balance sheet as an equity account. The member's capital account records the initial contribution and any additional contributions made.

The capital account also records each member's share of the profits or losses of the LLC. Let's say, for example, that a member's initial contribution is $10,000, and that member has a 50% ownership in the LLC. If the LLC has a profit of $5,000 in the first year, that member's capital account would include the member's share of the profit and be listed as $12,500 as of the end of the year (the initial $10,000 plus $2,500 from the year's profit).


https://www.thebalance.com/llc-member-capital-contributions-398638