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What percentage ownership should one calculate in an LLC?

Ownership is determined by the amount of capital contributions given to the LLC upon startup.  The total of all percentages should equal 100%.  You can calculate each member's percentage ownership by multiplying their contribution times 100 and dividing that number by the total contributions of all members.

Costs and profit shares will be determined by the percentage of ownership.  Although some states allow you to assign cost and profit shares that are different from the percent ownership, the Internal Revenue Service must approve of the change.  If you wish to assign cost and profit shares different from the percent ownership, it is suggested that you consult a lawyer or accountant familiar with LLC and tax laws for your state.

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