It's a new S corp and this is really startup funds that I am using from my personal finances. I must be missing a very easy point, but I've been on the irs web site other various sites. They all say you can use your own money as startup, but never give particulars about how to clasify it for your accounting purposes after you do it.
Answer:
Classify it as a loan from shareholders. It will be a current asset in the bank account . The offset is the loan due to shareholders.
You could also show it as a credit to owners equity. This way if and when you go to get outside financing they will see that you have a vested interest in the success of the business and are not just another creditor.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers:how do i get money to start a jewelry business?
does anyone know how to get a hotel business started.?
Are these filling out surveys for money worth it or they all a scam?
I need loan 50000 or more for the development of my business?
what is depreciation.?
prepare a simple business plan?
should you shut down a production plant if you don't even breakeven?
Do i need a health inspection to sell my homemade canned soups?