Capital contributions and distributions for a foreign‑owned disregarded LLC

 Capital contributions: It means the money you put into the LLC from your personal or business funds.

 Capital distributions: **Money the LLC pays out to you as the foreign owner.**

Example: You open a U.S. LLC and deposit 5,000 USD from your personal bank account into the LLC bank account. This 5,000 USD is a capital contribution. Later, the LLC has profit and you transfer 2,000 USD from the LLC bank account to your personal bank account. That 2,000 USD is a distribution from the LLC to you as the foreign owner.

Updated on: 27/01/2026