Question
It's a new S corp and this is really startup funds that I am using from my personal finances. I must be missing a very easy point, but I've been on the irs web site other various sites. They all say you can use your own money as startup, but never give particulars about how to clasify it for your accounting purposes after you do it.
It's a new S corp and this is really startup funds that I am using from my personal finances. I must be missing a very easy point, but I've been on the irs web site other various sites. They all say you can use your own money as startup, but never give particulars about how to clasify it for your accounting purposes after you do it.
Answer
Classify it as a loan from shareholders. It will be a current asset in the bank account . The offset is the loan due to shareholders.
Classify it as a loan from shareholders. It will be a current asset in the bank account . The offset is the loan due to shareholders.
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