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sea_coast_22
Level 1

What is the best method to enter rent expense as single member llc if rent was paid using personal funds?

(Apologies if this is the incorrect board) 1) I am sole proprietor of an llc working from a dedicated office space in a home. I paid a number of months rent using personal funds prior to getting business funding- How do I enter these rent payments in Quickbooks properly so rent shows up as an expense which was paid for by a personal account and not the business. I currently have the full rent listed to the landlord (vendor), and am unsure how to apply payment from my personal funds. 2) I'm thinking member/owner equity may be the key here? 3) Ultimately I see the business paying back 1/3 of total rent costs as this is the proportion of my home dedicated to the business, but this may be a separate issue. Thanks for your help.

 

 

1 Comment 1
Anna S
QuickBooks Team

What is the best method to enter rent expense as single member llc if rent was paid using personal funds?

Welcome to the Community, @sea_coast_22.

 

I'm glad to provide you with some insight into Expenses.

 

In QuickBooks, you can record Expenses that includes rent. Although to make sure you're categorizing them correctly, I suggest contacting your accountant for advice on how. The steps below will show you how to record an expense:

 

  1. Open Expenses.
  2. Choose a Payee.
  3. You can click Details to add more information or Save and do it later.
  4. Pick an Account.
  5. Enter the Date.
  6. Select the Payment Method.
  7. Choose a Category and then press Save and Close.

That's all there is to it. Now you and your accountant can discuss the proper way to categorize the Expenses.

 

If you have any other questions, feel free to comment below. Wishing you the best now and in the future!

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