Question
New Business Accounts Payable Question?
I am starting a new venture and putting in the start up capital out of my personal funds. Once the firm begins to make money, is the start up capital that I paid to start the company a debt that the company owes to me or is that a sunk cost? Don't think it matters, but if it does, the venture is a website that will be accepting advertising dollars as the primary revenue source. Thank you in advance.
5 months ago - 2 answers
Best Answer
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Your startup/new venture is different from you because each would have different identifications. As such money you give to the venture is yours and the venture should return it to you with a benefit for its use. Even if your venture loses money it is obliged to return your money to you, unless of course you agree to write it off as an irrecoverable loss/cost of learning a startup. Your accountant would be the ideal person to advise you on how these transactions get recorded/documented in your venture. Good Luck.
by ksr
5 months ago
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Other Answers
Hi, Either way the initial funds are yours & get refunded. If you are separate from the co ie: incorporated etc, the you are loaning the business start up money, if self employed you pay yourself in the manner your biz is set up. A business accountant is best to consult.
by krn001- 5 months ago