My partner and I created a multi-member LLC during 2012 but then had to dissolve the business during the same year. In the operating agreement it states that I "contributed $7,142.00 worth of services and expertise in management, financial and personnel administration, branding, design, and other related areas."

My question is this: How do I account for my capital contribution when preparing the LLC (or my personal) taxes for 2012?

Contributions to the LLC does not create a deduction for the LLC itself. It simply does not count as income for the LLC for tax purposes. As for your personal taxes, it does not create a deduction for you by contributing capital to the LLC either. You need to report it on Sch L of 1065; your capital contributions are not income. Also, income is not reported on the balance sheet.. In general, they make the appropriate accounting entries. The appropriate accounts need to be credited and debited once money is collected. If a member makes a $10K contribution, $10K should be debited from the cash account and the capital account should be credited for the same $10K. If a member fails to make a contribution as agreed, interest can be accrued on the unpaid balance of the capital contribution.The amount contributed will be owned by the LLC and the account should reflect the $10K in equity. Each member of an LLC has a capital account which is shown in the balance sheet as an equity account, Sch L of 1065. The member's capital account, Sch M2 of 1065, records the initial contribution and any additional contributions made. The capital account records each member's share of the profits or losses of the LLC. For example, if a (50% ownership) member's initial contribution is $10K, and the LLC has a profit of $5K in the first year, that member's capital account would include the member's share of the profit and be listed as $12.5K as of the end of the year. As you own an interest in the LLC, you'll receive a Sch K-1 each year. This form reports your share of the LLC's taxable income. The LLC does not pay tax on this money; instead, it is passed through to the you, a member, who must report the income on your Form 1040 personal income tax return and pay any resulting tax. Sch K-1 reports your share of the taxable income as well as deductions you are entitled to claim. You need to take your LLC books to a tax professional and have them prepare a 1065 for you.