
Ask HN: Do I keep bootstrapped cash in personal or business account (pre-rev) - mfurst
My two other founders and I are each coughing up 3k for our app to get to market.<p>We&#x27;re incorporating next month before launch (Gust or Clerky).<p>It&#x27;s going to be allocated to customer acquisition, operational fees, incorporation, etc.<p>We&#x27;re not going to see revenue for a while.<p>Question:<p>For tax purposes I am wondering: should I keep it in our company bank account, or should we keep most of it in our personal bank accounts and pay off the CC through the company as we incur costs? Is there even a difference? I&#x27;d assume marginal if any, but want to be sure.
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techjuice
If you are running an incorporated business you as an owner would take any
investment money you want to put into the company in the Business Owner
Contributions (equity investment account)/Business Checking account.

You can easily do this by writing a personal check to your company and writing
Owner Contribution by Your Title, First name Middle Initial Last Name on the
For line.

Just remember you need to accurately record your personal investments into
your business for accounting purposes. Easiest way is writing checks, which
the bank will record the front and back of when you deposit them. If there is
an emergency and you need to get money to the account faster a transfer would
be ok too as long as it is properly recorded in your business accounting
ledger.

If your an LLC or S-Corp it may work fine since the taxes would fall through
to you. If you are a C-Corp you would want to insure these are kept separate
as a C-Corp pays their own taxes which would be separate from your personal
income taxes.

To make sure though I would recommend you and the other owners visit a
business accountant (hire one that is good and keep them on retainer or have
someone that manages your books) so they can give you a better run down and
the legal requirements you have to follow and account for.

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mfurst
Thanks for the input. We're going to be a C-corp, so since a C-corp pays it's
own taxes we would want to keep the money in the business account?

