How to record distributions in Carta
Company administrators can create and record pro-rata and custom distributions for LLC entities directly in Carta. Use this guide to create, configure, release, and track a distribution.
Setting up the distribution
From your Carta dashboard, go to Manage Capital and select the Distributions tab.
Click Create distribution, then fill in the following fields:
Field | Description |
|---|---|
Total to distribute | The total dollar amount of the distribution |
Date | The distribution date |
Type | Current, Tax, or Sale — used for categorization only; does not affect calculations |
Allocation method | Pro Rata or Custom |
Description | A name or label for this distribution |
Next, you'll configure return of capital based on the allocation method you selected:
Pro Rata
A Return of Capital modal will appear. Select one of the following options, then click Continue:
Return percent of payment — enter the percentage to apply as a return of invested capital
Do not return invested capital
Custom
Enter values directly in the allocations table:
Returning invested capital — the portion of each payout applied as a return of invested capital
Returning preferred return — the portion of each payout applied to the preferred return
Review & release
Click Save draft to save your progress. You can return to the distribution and make changes before releasing it.
When you're ready to finalize, click Release. A review screen will appear with:
A summary of the distribution and its allocation breakdown
An Investment records updates panel — participating interest holders' records will be updated, back-dated to the distribution date
A Send notifications checkbox to email holders about the distribution; click Preview email to review the notification before releasing
A warning banner — Some participating interest holders cannot access their own records — if any holders don't have portfolio access. Click Who is affected? to see the full list.
To confirm, check the This distribution has been reviewed and authorized box, then click Release.
Mark allocations as paid
After releasing, return to the Distributions tab to record payment status. This step is for record-keeping only — no money movement occurs in Carta.
To mark allocations as paid:
Select the allocations you want to update, or click Select all unpaid to select all outstanding allocations at once.
Click Mark selection paid.
Enter a Payment date in the dialog that appears and confirm.
Once all allocations have been marked as paid, the distribution status will automatically update to complete.
Export to XLSX
To export a distribution report, click the export button. A confirmation message will appear — Your export is being prepared. Check Downloads.
Once generated, the file will be available in the Downloads tab in the top right.
Investor portfolio view
After a distribution is released, participants can view their allocation in the Distributions tab of their portfolio. Participants must have portfolio access enabled to see this information.