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How record owner contribution in personal QB account?

Forum|Forum|7 years ago
December 11, 2018
2 replies
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Setting up new S-corp in QB. Starting new business with personal funds. If I record this deposit as a owner contribution (equity acct), how do I record the money going OUT of my personal bank account, which is set up as a separate company in QB? (Is it still a "contribution" even though the money is going "out" of this account?) Similarly, will owner distributions that are deposited into the personal account, still be labeled "distribution" in the personal company in QB even though the money is coming IN? (OR is the money going out of corporate acct a dist and money coming into personal acct is cont?)

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Best answer by Rustler

an as s-corp you are required to pay yourself as an employee, that means payroll, withholding and w-2 at the end of the year

You are a shareholder in the s-corp, there are no equity accounts the way a partnership or sole-p has

Distributions are something that happens after salary is paid

You need to sit down with a tax accountant and get things set up correctly, as well becoming familiar with how the s-corp works

RustlerAnswer

an as s-corp you are required to pay yourself as an employee, that means payroll, withholding and w-2 at the end of the year

You are a shareholder in the s-corp, there are no equity accounts the way a partnership or sole-p has

Distributions are something that happens after salary is paid

You need to sit down with a tax accountant and get things set up correctly, as well becoming familiar with how the s-corp works

A

arkvalleyinfoAuthor

Thank you.

M

MDTerp65

Seems to me the personal account should have an asset account for Investment in xxx S Corp.

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