account / inventory ? for those with an LLC

[RyanMDnyc]

If I were to start an LLC to sell sports cards and use some of my existing cards purchased as a collector months to years earlier as inventory - how do I account for the cost of this inventory? Selling a card for $110 that I bought for $100 prior to the LLC for example. Can I still consider the cost of goods to be $100 even if that cost of goods occurred prior to the LLC being created?

Thanks for any insight.

[kerg]

Ultimately talk to an accountant, but those goods will be received in from you to the business as I believe an investment or loan along with other startup capital.

[JMarchand1981]

Ultimately talk to an accountant, but those goods will be received in from you to the business as I believe an investment or loan along with other startup capital.

Or equity...

[HoustonCPA]

You would contribute the cards to the LLC in exchange for equity in the LLC at your original cost.

If you had 1,000 cards at a cost to you of $1 each, your balance sheet would show $1,000 of inventory and $1,000 of owner's equity/retained earnings after you contributed the items to the LLC.

Then when you sold all 1,000 cards for $3 each, you would show $3,000 of gross receipts and $1,000 of cost of goods sold on your income statement for a net profit of $2,000.

After you sold the inventory, your balance sheet would then show $0 of inventory and $3,000 of owner's equity/retained earnings.

[RyanMDnyc]

You would contribute the cards to the LLC in exchange for equity in the LLC at your original cost.

If you had 1,000 cards at a cost to you of $1 each, your balance sheet would show $1,000 of inventory and $1,000 of owner's equity/retained earnings after you contributed the items to the LLC.

Then when you sold all 1,000 cards for $3 each, you would show $3,000 of gross receipts and $1,000 of cost of goods sold on your income statement for a net profit of $2,000.

After you sold the inventory, your balance sheet would then show $0 of inventory and $3,000 of owner's equity/retained earnings.

Thank you - appreciate the detailed example