How to Apply for an SBA Loan
Question
Will depositing a personal check into my business account affect my taxes?
I recently started a business and am funding (if you call going broke, funding) it with my own money. I received a personal check today and I want to use it to buy supplies. Should I deposit the check in my personal account or business account? I don't want it to appear as gained capital (a payment from a client) when I file my taxes. But my business account is dangerously low and I want to apply for a SBA loan in the future. What should I do to protect myself during tax time?
2 months ago - 1 answers
Best Answer
Chosen by Asker
I don't think it matters all that much if you deposit it in personal or business. I mean it may be better and less confusing for your accountant if you deposit this personal check in your personal account and then cut a check from your personal to your business. It does matter how you account for it. Money that you put into the business is considered your investment and goes to your equity account. It also may depend on how your business is set up. Are you a partnership, sole proprietor? There maybe too many variables to fully answer your question. If you are planning on applying for a business loan you may also need to provide reviewed or maybe even audited financial statements to your lender.
Source(s)
Not yet a CPA. I am currently finishing up a 5th year at college (required for the CPA exam). I have 4 years experience working on bookkeeping with emphasis in the past year in taxes and financial reporting.
2 months ago
Asker's Rating: 