GAAP financials for LLC electing to be C corp

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#1
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Not that I do any gaap financials, but a new client asked how to record the buyout by the LLC of two members of their LLC taxed as C corp.

Would think legally the buyout would be recorded as if it were an LLC and legally would follow the LLC agreement if for example they had left negative capital account wording in the agreement.
 

#2
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If they still reference capital accounts after electing to be taxed as a corporation, their operating agreement is invalid.
For tax and accounting purposes, this is the buyout of stock.
~Captcook
 

#3
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for what it's worth, AICPA tech hotline responded to my request for GAAP reporting prepare financials for an LLC. Didn't say, but presumedly you add something in the report letter about the LLC electing to be taxed as a C corp.
 


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