Multi-Entity Cost Allocation Calculator
If you own multiple LLCs, your shared costs are probably sitting on the wrong entity — killing your net income and DSCR. This tool shows you exactly how to allocate them properly and generates the journal entries your bookkeeper needs.
Why This Matters
The problem:Most multi-entity owners pay themselves from one LLC, load enterprise-wide software and insurance on whatever entity has cash, and never formally allocate costs. It works until you need a bank loan — then your most profitable entity looks broke because it's carrying everyone else's overhead.
What banks see:When you apply for financing, the underwriting team looks at the P&L of the entity requesting the loan. If your owner salary, shared software, insurance, and professional services are all sitting on that one entity, your net income and DSCR (Debt Service Coverage Ratio) are artificially low. The bank says no — not because you can't afford the loan, but because your books don't reflect reality.
The fix:Properly allocate shared costs across all entities. Your bookkeeper books one journal entry per month. Cash doesn't move — you just create Due To / Due From entries on the balance sheet. The P&L of each entity now reflects only the costs that entity should carry.
How This Works
Step 1: Your Entities
Add your LLCs. Mark the one you're seeking financing for (if any).
Step 2: Shared Costs to Allocate
List the costs that should be spread across entities but are currently sitting on one. Common examples: owner salary, insurance, software, rent, accounting fees.
Add at least 2 named entities and 1 shared cost to continue.