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Accounting for First Time Holding Investment

s2cs2c Member Posts: 3

Hello, my LLC will be sending out the first payment ever to my just-created company in Europe. The idea is that the LLC is the holding company. How should this payment be categorized? Thank you.

in Accounting Technical Support

Comments

  • JamieDJamieD Administrator Posts: 1,156 admin

    Hey @s2c. Just thought I would confirm with you here -- is this payment an investment in the company? If so, you will want to make sure that it's categorized as an Owner's Investment, if not, let me know so we can dig a little further here.

  • s2cs2c Member Posts: 3
    Thank you for your response Jamie! It is indeed an investment that my LLC is making in another company, one that is in Europe and that has just been created. In other words, my LLC will own the newly created company 100%
  • rwcghrwcgh Member Posts: 16

    What about if a company using Wave for accounting is investing in a different company--not 100% owned? How to account for the cost basis of the investment in Wave?

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