I am buying out my partner's share of our LLC. We have agreed to a price but I am not sure how to resolve the payment issue.
She wants LLC to pay her. Our Tax guy screwed up along the way and there seems to be $ on her capital account balance of the LLC ( she was already paid back that amount so this would not be $ due to her just a book error). So if she takes part of this buyout from the LLC as this reimbursement she doesn't have to declare it as income but as a reimbursement. I was going to pay the remainder personally (so our IRS stories jive and she doesn't claim the whole thing as a reimbursement). Can this be done or will that split payment reflect that the LLC would own a %of the company and I personally would own a % of the company? Is it better for me or the LLC to pay?