I am a bookkeeper who recently took on a client that is separating an LLC into three.
They were: Master LLC with a dba of XYZ
They are now:
- Master LLC owns - XYZ LLC 100%;
- A split off service ABC LLC 50% owned by Master LLC.
Is there a single, right way to divide out the original LLC’s retained earnings/profit into the new companies? Or is this at the decision or will of the company owner?
I feel like I should know the basics before I enter into a discussion with the business owner about how to proceed.