I will give some quick background
My wife left her job recruiting and is working from home.
We established an LLC, and we did not expect revenue the first year. So I did not file in time to be taxed as an S corp. So this year we will be taxed as a partnership
Her business took off unexpectedly and now I am getting my books together.
That was no problem, wee have a bank account specifically for the business. We did need some of the money for normal living expenses. So I just created an expense account to track what we have taken out.
Seemed like the equity account is where I should have put this since it is now showing as an expense and that has to be wrong
But I am confused about that. Since this very small business had no real start up costs and my wife and I (the partners) paid nothing in to get started, we have no equity
Sage only let's me set up equity closed and equity not closed
Do I set up a non closed equity account and put that money in there waiting to. Get the final distribution for the year?
So confused
My wife left her job recruiting and is working from home.
We established an LLC, and we did not expect revenue the first year. So I did not file in time to be taxed as an S corp. So this year we will be taxed as a partnership
Her business took off unexpectedly and now I am getting my books together.
That was no problem, wee have a bank account specifically for the business. We did need some of the money for normal living expenses. So I just created an expense account to track what we have taken out.
Seemed like the equity account is where I should have put this since it is now showing as an expense and that has to be wrong
But I am confused about that. Since this very small business had no real start up costs and my wife and I (the partners) paid nothing in to get started, we have no equity
Sage only let's me set up equity closed and equity not closed
Do I set up a non closed equity account and put that money in there waiting to. Get the final distribution for the year?
So confused
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