I have recently started a company and used some of my savings to start it. That sum of money would be categorized as owner’s investment...correct?
Might be a silly question but is owner investment a expense or income for the company.
once the company is profitable I could do a owner investment draw...how would I categorize that in QuickBooks. Would that be considered an expense for the company, would I have to pay taxes to get back my investment into the company?
ex.
if I put 20k as an investment into the company.
the company after 1 year is profitable - 50k
I do a owner investment draw of 20k, then does the P/L for the company say profit of 30k?