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When starting an LLC, should I list any cash as a capital contribution.?

I'm forming an LLC in New York to start a small business. I know adding cash as a capital contribution adds to the equity of the business (making it worth more on paper) but I want to know if there's any other advantage (or disadvantage) to doing (or not doing it). Also, the business will be something I'm doing on the side completely unrelated to my regular 9-to-5 job. Will there be a problem reporting business income/expenses since I'll still have a "regular" job/salary?

Public Comments

1. Your cash contributions will be a capital contribution. There is no problem with having LLC income and salary income, but there are some rules applicable to the LLC. If it is a single-member LLC, it is a 'disregarded entity', so you report it on Schedule C as part of Form 1040. If you are not the sole owner of the LLC, then it is reported on Form 1065 and a Form K-1 goes to each owner who will then report it on page 2 of Schedule E.