USA Mutual benefit corp investing and bookkeeping

[Stephaniem1221]

I am starting a mutual benefit corp and have an angel investor who would like to help me start up. Since no distributions are allowed how do I account for this investor? No dividends, so no shareholders. How does he get compensated?
Also, do I keep the books as a regular corp or business, or do I have to use fund accounting?

I majored in accounting but don't have my CPA so I need some clarification.

 

[smallbushelp]

I assume you are establishing the entity as a not-for-profit corporation. If I remember my schooling correctly, the entity will have to file tax returns and pay taxes like a regular corporation unless it can obtain tax exempt status from the IRS. If it is formed as a non-profit, there can be no distribution of profits at the end of the fiscal period. However, the entity can repay a start-up loan with interest. And since it's your organization, you can keep the books in anyway that works best for the entity. Fund accounting is typically used by 501(c)(3) organizations. You may want to just use regular corporate accounting.