I am a member of a multi-member LLC. My dad wants to gift me money and pay for my share of the LLC. My dad is not a member of LLC.

What are the tax consequences if my dad sends money directly from his account to the LLC on my behalf?

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  • 6
    A country tag would help. – JoeTaxpayer Mar 7 '18 at 17:21
  • Don't do that. Have Dad give you the money, then do the business yourself. (As Rupert explained.) – Fattie Mar 8 '18 at 21:53

If your Dad (who is presumably not a member of the LLC) puts money in, then it is income for the LLC (unless it's a loan). You would probably be better off having your Dad give or loan you the money. Depending where you are (country tags!) and how much it is, either you or he may still need to pay gift tax.

  • You referred to Rupert's answer. Please explain why it would be considered income for llc. – Sonia Mar 11 '18 at 23:01
  • Because it's income when people give you money? – Rupert Morrish Mar 12 '18 at 0:11
  • Wouldn't it be considered a gift? Instead of giving me a check, he is just writing it to the multi member llc to pay for my part of share. – Sonia Mar 12 '18 at 4:18
  • It's a gift if he gives it to you. I can't state categorically that the same does not apply to LLCs, but it would strike me as a wide-open loophole if an LLC could just receive money and not declare it as income. – Rupert Morrish Mar 12 '18 at 5:08

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