legal, finance, s-corporationI have an S-Corp formed in Illinois with a minimal amount of stock all owned by myself. I have no employees.
Is there anything I have to do to legally give my own company money? (Small amount… $2,500 or so.) Or, do I simply write my company a check and that’s that?
Once I have given my company money, is that reported as paid-in capital to the state?
Money coming into the company from founders would usually be marked as an investment in the form of paid in capital or capital contribution. It can be cash or non cash as in giving buildings as vehicles for use. Cash would appear on the cash flow statement as cash from financing activities. Non cash assets would appear on the balance sheet with the asset valued at a fair market value. Usually this is reported via financial statements. State reporting for paid in capital may vary and is best to check the state regulations. It looks like the IRS wants the 1120SK-1 forms for reporting shareholder details for S-Corps. This is article has some on it http://lindakeithcpa.com/where-do-i-find-shareholder-contributions-and-distributions/
Check the section on Capital contribution here http://www.irs.gov/publications/p542/ar02.html It is discussed in more detail here http://budgeting.thenest.com/differences-between-paidin-capital-capital-contributions-23245.html
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