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Listing Personal Investment

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

Reply to
Mark T.
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Not a QuickBooks question. Call your accountant.

Reply to
Allan Martin

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.

Reply to
Bob

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

Reply to
Mark T.

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