I recently formed an LLC as a sole proprietor. Prior to the formation of the LLC, though, I made some investments using my personal checking/savings accounts:
- Filing fee with the state
- Website building software, hosting, etc.
- Google Workspace signup
- Domain name registration
I created a payment account for my personal checking account and have begun entering these as expenses, but I'm unsure what to enter in terms of the balance for the payment account. Can I just leave that at $0?
I also had some existing clients that I had started working with prior to its official formation pay me shortly after formation, but before I had a business checking account. These were sent via Apple Cash and ACH to my personal checking account. Since they were paid after formation, though, I want to make sure they're recorded correctly. I guess I'm just looking for the best way to do this... Should I enter these as paid invoices and then enter an owner's draw to my personal checking account?
