Can shares be issued for a Florida L.L.C.?

Question

If yes, what are the tax implications?

Answer 1

Assuming that you did not elect to treat the LLC as a corporation, an LLC that is treated as a partnership for federal income tax purposes may issue membership interests, which you may refer to as shares in your operating agreement, in exchange for cash or property without incurring gain for the LLC or the contributing person. There can be income to the contributor in certain cases if there is debt on the contributed property.