Listing Personal Investment


M

Mark T.

How do I properly list the money I have
personally invested into my new startup
business into QB? Very beginner, so
step by step appreciated. You know how it
goes; you put in money at various intervals over
time when you can afford it.
It is a fresh installation of QB with nothing else added yet.
We are an S corp and have selected that
during the interview process.

Would also like to show $2K invested in 2005 and
starting our year Jan. 1. No revenues incoming
yet, so we'll take our tax deductions in 2007 tax year.

Thank you,
Mark
 
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B

Bob

After you talk to your accountant, it then becomes a QB question...

As a "S" Corp. you must have corporate stock. Your accountant will
recommend an appropriate amount of money that you should deposit to
the company to buy the stock. Let's say that the magic number is
$1,000. Deposit $1,000 to your checking account and the offset will be
capital stock, an equity account.

You will be capitalizing or funding the company with two types of
money. One is permanent money or capital stock. The second is temporary
money, a loan that may be repaid to you without tax consequence.

You can create the capital stock transaction by going to "banking",
"Make Deposits", typing your name in the "Received From" column, type
"Capital Stock" in the "From Account" column and continue. You may need
to fund your new business in excess of the amount of capital stock that
your accountant recommends. These funds should be deposited into the
company account with the offsetting account as "Note Payable - Related
Parties" as a Long Term Liability.
 
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M

Mark T.

Bob,

Thank you so much for your answer to my QB question!
That's precisely what I was asking about. You've set me
on a path I'm comfortable with. Thanks again,

Mark
 

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