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Nov 18, 2022 4:25 AM UTC
Question

A non-profit operated as an entity before they got their EIN - one of the founders gave a loan of $1000. How to record that since it happened pre inception?

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1 reply

BigRedConsulting
Nov 30, 2022 11:23 PM UTC

Typically use an Equity account and the cash/bank account the loan was deposited into.

 

I don't think it matters if the loan was before or after getting an EIN, which doesn't relate to any sort of legal status for the actual organization.