I started an S Corp in Virginia this year. I funded the business with a $15k check written from my personal bank account to my business bank account. I am the only shareholder, and have zero revenue this year.
What are the tax implications for funding my business this way, and how to I minimize the tax impact?
There are no tax implications if this was funded by your after-tax income. Funding an S-corp with personal cash increases the business bank account and owner's equity account by the same amount on your balance sheet. It does not have any impact on income.
There are no tax implications if this was funded by your after-tax income. Funding an S-corp with personal cash increases the business bank account and owner's equity account by the same amount on your balance sheet. It does not have any impact on income.
Unless you wanted to over simplify it, your suggested solution is for a sole proprietorship, not an S corporation.
The number of shares exchanged and per value is taking into account to determine the order in which the said contribution is recorded in the Capital Stock and Additional Paid-in-Capital.
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