C
ckinc
Guest
Lets say you are one partner out of a five member family business formed in an LLC. No one really put any money into it, you just started working as subcontractors for bigger businesses (construction business). So, all of your books are in order, and you take it all into to a CPA. Your CPA tells you that your books aren't in proper order and small things that were paid for by one member such as state filing fees (only $125) and business cards ($15-$30) must be accounted for as capital for that member. Your idea was to show no initial investment and just claim those costs as a business expense on your personal taxes. Why is the CPA correct? How does that benefit you? And as a first time small business bookkeeper, how to show capital investment for an individual partner on Microsoft Accounting?