Questions

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

If you are the owner of the corporation you can transfer cash into the corporation in exchange for stock and its generally not a taxable event. The cash you contribute to the entity is recorded as either common stock or additional paid in capital which are all equity accounts. None of the cash should be recorded as income of the business. Alternatively you can fund the bank account and record the amounts as a shareholder loan on the company's balance sheet.


Answered a month ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2020 Startups.com LLC. All rights reserved.