Hello experts. So I have been operating a business unincorporated and basically just under my name. I have now recently incorporated it and would like to take the money that is still unspent and move it into the new corporation bank account, but I don't want it to seem like new income. (Or does it matter?) Can I just move money into the corporation at any time be it from my own pocket or other income sources to be used? Or is there some special way to move money into the corporation? Signed, So New
It really depends under which legal jurisdiction you are. The tax laws are very different in each country.
Very generally speaking, every income needs to be accounted for, but what you could do is transfer the money to your corporate account and register it as a founder's loan to the company (which may or may not be paid back to you in the future). You just need to take into account that you still may need to report the source of the income (even if you didn't have a company then) and pay taxes for it (if applicable in your case - again, it depends where you located, how you're registered with the tax authorities, and what the amount is).
* Disclaimer: the above should not be seen as legal or tax advice as this is impossible to give without knowing all the details. You should always consult with an accountant or lawyer. I can try connect you with one if you let me know your location and budget.
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Answered 2 years ago