[GNC] One LLC pay expense of another LLC

[Ian Bellamy]

Not advice but in accounting terms if LLC-b needs to raise cash it can be
done either through equity finance or debt finance.

LLC-b sells common stock at par (amount above par goes into Additional
Paid-in Capital account) to LLC-a in exchange for cash OR
LLC-a lends cash to LLC-b in the form of a note payable

You are correct that the balance sheet would be adjusted to account for the
new cash.

Not wise to mix up the expenses of separate entities (some would call this
"piercing the corporate veil").

On Sun, Apr 28, 2024 at 9:18 AM Fred Tydeman <tydeman.fred at gmail.com> wrote:

> If LLC-a pays an expense of  LLC-b
> ie, cash from LLC-a goes to expense of LLC-b,
> should I also show a transfer of equity from LLC-a to LLC-b?
> It seems that needs to be done so that the Balance sheet for LLC-b is
> correct.
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>