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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54362
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I started a company in Houston, TX in 2012. It is for Real

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I started a company in Houston, TX in 2012. It is for Real Estate investing. My initial capital is $8000. I have an EIN. I do NOT have a bank account set up.

I have not taken the time yet to invest in real estate and as such, have not made any purchases with the business. Will I need to pay taxes on this initial investment?

Thanks much
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good evening. What kind of entity is your company? Thanks.
Customer: replied 4 years ago.

Ofcourse. The company is a LLC and I am the sole participant.

Thanks for following up. The contribution to the LLC would not be taxable. It is a non-recognition event...under Section 351 of the Internal Revenue Code if you have elected for the LLC to be taxed as a corporation; and under 721 of the Internal Revenue Code if you have elected for the LLC to be taxed as a partnership.



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