Denne Posted April 2, 2008 Report Share Posted April 2, 2008 My client invested $5000 in an LLC. The description on the paperwork refers to him as an Independent Affiliate. He received a letter from a local law firm that refers to him as a Charter Member and indicates that the law firm is winding up the affairs of the company at this time and is dated July 25, 2007. What is the proper treatment of this loss? My client has tried to contact the company and there hasn't been any response. He wrote a letter to the company asking for his money back and also wrote a letter to the law firm handling the matter and can not get a response as to whether there will be any settlement or not..... Thanks for your expertise!! Quote Link to comment Share on other sites More sharing options...
ed_accountant Posted April 2, 2008 Report Share Posted April 2, 2008 He needs to wait for a k-1. He should contact the attorney and ask for a K-1. He can check with the secretary state regarding the LLC status. He cannot write off his investment until the LLC has been closed or out of business. Quote Link to comment Share on other sites More sharing options...
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