Joint venture acquisition and cap ex for 33.33% partner

Investor Q&A
1

acquisition costs:
If I have a joint venture with a partner who brought in equity to close escrow, how do I book the transaction…ie they contribute total of ~ $50,000 for COE, construction costs. In return they are receiving 33.33% ownership in the venture.

I was able to add their ownership, but how do I give them credit for their contributions in acquisition and capital expense of the project?

2

The best way here is to issue shares. If you don’t have an LLC or corp already set up it’s only a few hundred dollars. You can set your price per share arbitrarily, something like $1,000 per share and then issue 500 shares for the partner’s contribution and in the future if you have someone add more contribution you just do another share addition.