Contribution and Draws from Corporation

[devbanana]

Hello,

We just incorporated this quarter. However, I want to update our books from the beginning of this year.

Now that it's a corporation, it has its own business account, obviously. But prior to this, I paid most of the business expenses, either through my personal checking, or through PayPal. We do all of our business online, so PayPal is used 99% of the time.

So earlier this year, any time money was received, it was withdrawn from PayPal directly into my personal checking account.

Now I'm wondering how to categorize this. It could be dividends, but we weren't in profit until recently and I don't think you can declare dividends when there is no profit, right?

Also, my contributions to the company, should they be labeled as common stock, even though it was not incorporated yet?

We are a corporation located and registered in New York.

Thank you for your assistance.

 

[The Finance Writer]

You should have two sets of books -- one for the business prior to the incorporation date and one for the corporation that starts on the incorporation date.

You cannot combine these "from the beginning of this year."