I manage a band and want to pay a studio to record them—I have both a business and personal account with funds. How is my equity affected if I pay out of either to the studio?
Personal Funds are loans to the Company or Equity Contributions. This does not change your net income or what is taxable to you as the owner. If the Business nets $100, then you pay tax on $100. You can chose to pay yourself back with the $100 or not.
Answered 7 years ago
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