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Wanting to reimburse a co-founder some funds that we temporarily put in the bank account. How do we code it and avoid it appearing as new income tax-wise for accounting?

 
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Best answer 06-03-2019

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Re: Wanting to reimburse a co-founder some funds that we temporarily put in the bank account. How do we code it and avoid it appearing as new income tax-wise for accounting?

If the company is taxed as a sole proprietor or partnership, write the check and use equity drawing

 

if the company is taxed as a c- or s-corp, write the check and use liability account the company used to record borrowing the money to start with

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Established Community Backer ***

Re: Wanting to reimburse a co-founder some funds that we temporarily put in the bank account. How do we code it and avoid it appearing as new income tax-wise for accounting?

If the company is taxed as a sole proprietor or partnership, write the check and use equity drawing

 

if the company is taxed as a c- or s-corp, write the check and use liability account the company used to record borrowing the money to start with