Question: LLC/Corp membership?

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EqtTrdr

Is being a member/shareholder of an LLC or Corporation considered an asset?

For example:

When applying to a school for financial aid does the membership in a Corp/LLC count towards one's assets and income?

Or just the amount "Drawn" or paid as salary from the corp/llc?


tried to google info on this and unable to find it


any help is appreciated!!

tia
 
An LLC not taxed as a c-corp is your asset and your income. The actual cash distributions have little if anything to do with asset or income.

You would report the cash distributions when you are doing a cash flow analysis, such as when you are doing a debt payment workout.

One might think that that it would make more sense for College Aid to use the cash flow - but they do not, rather they look to your federal income tax return.


When you have a c-corp then it also your asset, but the wages and dividends are your income.
 
traderstatus,

here's a question for you. If one is a Class B member of a trading firm LLC, shouldn't one be allowed to know the financials of the LLC? I've always found it kind of amusing, that Class B members are supposedly not allowed to know the profitabiity of the firm of which they are a member. I'm sure that somewhere in my partnership agreement it spells out that I'm not allowed to know ... but this always seemed somewhat suspect to me.

Regards,

Slave2Market
 
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