feh wrote:Followup question for other LLC members - do you include LLC shares when analyzing your portfolio AA?
I think whether and how you include LLC assets is contingent on the situation.
• I'm self-employed and the business is an LLC; so, for that LLC I draw a salary and also have an i-401k. Those go into the portfolio and net worth calculations. But you asked more about shareholder situations, so.....
• For a different LLC, I hold 25% shares. It goes on the balance sheet as a placeholder with no value beside it. Currently, it does not generate distributions, but when it does, I will reconsider how it should be included. I don't include it in net worth calculations or portfolio AA.
• For a third LLC, spouse holds about 5% shares and this one has a valuation. It is listed on the balance sheet under "cash" assets but we have the cash holdings sectioned between liquid and not; this valuation is listed under illiquid. I do not include it in portfolio AA calculations.
• A fourth LLC has a very specific value. It currently generates monthly distributions and will have a balloon lump-sum payout in a few years. This one is on the balance sheet under illiquid cash. I do not include it in portfolio AA calculations.