I have a single member LLC which is a disregarded entity for IRS purposes. I have a new attorney who told me that when ever I make a capital contribution to the LLC out of my own pocket or transfer by Quit Claim into the LLC (it currently holds only one rental property), that I have to file or record the contribution (cash or property) with the IRS.
I reviewed IRS publication 542 and I think I DO NOT have to do this since my LLC is not being taxed as a corporation but as a disregarded entity. My accountant has not mentioned this. What say you? I have recorded the initial cash/capital contribution to the LLC in the Operating History I maintain for the LLC and when property has been transferred into the LLC in the same manner.