Is Moving Your Assets Into an LLC a Taxable Event

Added: 2026-06-02

[00:00:00]If I move my assets into the LLC, is there tax implication? There can be if you set up a partnership. So, a lot of people want their spouse on the LLC, which is completely understandable, right? There are 15 states that have a qualified joint venture or a QJB. And if you're in one of those 15 states, you can use that exemption between you and your spouse to set up a partnership and still move the assets in there with no tax implications. If you're not in one of those states, one of the spouses is going to set up a single-member LLC.

[00:00:27]This is a disregarded entity and they are going to use the assets as a capital contribution to start the business. The way that we do that is you will write down the the wallet, the amount of the asset, the asset name, you know, XRP, XLM, Bitcoin, whatever you're putting in there, and the dollar amount that you bought it at. So, we used to talk about, you know, the day of the transfer, writing that amount down. We work with our CPAs and and and this again, like it's an iterative process. We're always improving it. If you can write down the basis, that's when you're that's the value that you're transferring in. So, even if it's at a higher value or a different value than what you originally purchased it at, you're going to write down the basis value in your operating agreement on the capital contributions page. That tends to be like the schedule three in your operating agreement toward the end of it and that's where you're going to list the wallet again, you know, the asset, the amount of the asset, and your cost basis or whatever amount of money it was worth if, you know, when you bought it.