USA Capital Contribution possible from non member? LLC

[Ratherbegolfing]

Trying to attain some additional funding for inventory for a recently established single member LLC.

Here is the example:
I have started the LLC and funded it with 50K as a capital contribution.
I am the only member of the single member LLC.

I have a second source of funding (family) willing to give a 50K capital contribution with no strings attached however they are not a member.
2 Questions:
1) Can they place a capital contribution into the business account?
2) Can I return their capital contribution without them being taxed?

Obviously it seems if they were a member in the LLC this would be no issue. However what if they are NOT a member?
- I guess the second option would be to structure it as a loan with a low interest?

Thanks so much... trying to read as much as possible on this great forum.

 

[Houston Tax Attorney]

For U.S. income tax purposes, they will be treated as a partner or joint venturer if they make a capital contribution. There are workarounds. I am not exactly sure what you are hoping to achieve, but you might read up on profits interests. They can be structured so that they vest over time. Then 83(b) comes in. It could freeze the value at $0 or something nominal if the business is currently a start up and then the award would be deductible to you and income to the other person when the interest vested. There are a number of other implications that must be considered, naturally.