How do you setup a new account?

How do I account for expenses prior to company bank account setup?

• I'm an LLC member and have incurred some start-up costs prior to being able to setup my LLC's bank account. Myself and my cofounders have incurred company related expenses prior to our bank account setup, and I'm curious what method is most advantageous to document them in our accounting. There are a wide variety of expenses and I've listed at least at a high level how I think they'd need to be brought in: -1st month's rent & deposit for an office - Expense -logo design - Asset -domain name - Asset -GitHub subscription - Expense -LLC paperwork fees - Expense -Software - Expense Am I on the right track here?

• Answer:

  You have a few options to get the expenditures onto the books of the new business. If there are sufficient funds you can write a check to each of the members to reimburse him or her for what was spent If you are not in a position to reimburse, then you can still record the expenditures and enter an offsetting credit to either due to members or enter it as equity contributions.  The appropriate choice will depend on how you intend to have your LLC taxed, so I advise you to consult with your CPA or tax professional before you make this entry. As far as classification, I suggest you also consult your CPA about the specifics of your expenditures to determine the appropriate and most beneficial classification.