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Updated about 7 years ago on . Most recent reply presented by

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23
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6
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Will Barksdale
  • Investor
  • Northern Florida
6
Votes |
23
Posts

Ownership percentage vs. profit allocation percentage

Will Barksdale
  • Investor
  • Northern Florida
Posted
BP, I have an interesting question regarding ownership percentage vs. profit allocation percentage within an LLC. I want to have an operating agreement where party A owns 60% of the LLC and party B owns 40%. Additionally, we want to split all profits and losses 50/50 in a buy and hold rental business. Here’s the question: -can the paper losses of depreciation, interest deduction, and other write offs be split 50/50, or would they be required to follow the ownership percentages instead? Looking forward to your inputs. I’ve done a bunch of searches for this data and have been unsuccessful-I’m probably not searching for the correct words.
  • Will Barksdale
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