> I am looking to find out if something is legal from a tax
>> perspective because I heard of a company doing something
>> along these lines a few years ago but wasn't privy to the
>> details.
>>
>> Basically if there are two owners to a LLC can one owner
>> accept all the loses to the LLC while the other owner
>> accepts none?
> Since losses are "asigned" based on membership, that
> works if one owner has 99% ownership, thus the other
> minority member would be "awarded" 1% of the loss.
>
> Remember though, deductibility on a member's 1040 still
> depends on basis within the LLC.
Is the reason good enough? That one of the two partners is funding the venture which is not profitable yet so he gets to accept all the loses. Steve
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