Created 2nd LLC, whats the proper way to fund this? (Details)

[Robert Huizar]

California LLC. Business established Jan 2018.

My partner and I started off by forming an LLC but quickly learned that we should probably have a passive and an active income LLC. We have already poured our funding into the initial LLC's business bank account but now want to redistribute the money so we can fuel the 2nd llc's bank account. But since one LLC is not the parent of the other (individual stand-alone entities), we're not sure how to properly account for this transfer.

Whats the proper way to do this to not incur fees due to technicalities (such as avoid making it look like a disbursement? Do we just make the wire and note in our accounting that we were still starting up and unsure of how to distribute capital? Do we need to amend the LLC articles showing the corrected investment amount?

Thanks for your help

[Josh Sohar]

Best way is to talk to a CPA or tax professional.