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- Jul 10, 2013
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Just started a LLC S-corp. I am sole member.
My initial funding is 10K to get things moving. I am wondering if there is any merit to recording some of that as a loan.
One specific question on recording it as equity only...if after 1 year if I decided to cease operations and there was 1 asset being 10K in cash and I removed it would that be taxable or a return of capital?
-if it was a loan it would be return of capital from what I know.
Any other thoughts on the initial accounting?
My initial funding is 10K to get things moving. I am wondering if there is any merit to recording some of that as a loan.
One specific question on recording it as equity only...if after 1 year if I decided to cease operations and there was 1 asset being 10K in cash and I removed it would that be taxable or a return of capital?
-if it was a loan it would be return of capital from what I know.
Any other thoughts on the initial accounting?