Question Regarding LLC Capital Contributions

[Jim Guthrie]

Hi,

I am trying to use GnuCash to set up the books of an LLC my wife and I
created as part of our estate planning strategy. This LLC has as assets a
cabin in the mountains in New Mexico that my wife and I transferred to the
LLC. The members (owners) of the LLC are myself, my wife and our five adult
children. The intent of the LLC is to provide the means to transfer
ownership of the cabin and keep it in the family after my wife and I pass. I
won't go into the details of the advantages of doing this compared to other
approaches but only to say it avoids certain taxes and other issues
associated with transfer via a will. 

 

I am not an accountant but I generally understand accounting principles.
Specifically, my question is how are member capital contributions accounted
for? The LLC has no income per se and operating expenses, improvements, etc
are paid for by capital contributions from the members. For example the
cabin ownership, itself, was transferred from my wife and me to the LLC.
Member equity in the LLC is based on capital contributions but I am unclear
on how to record the contributions in the LLC books. Any guidance would be
appreciated.

 

Thanks,

Jim Guthrie