You need to get a bookkeeping 101 book…I do not say that to be crass, you simply cannot properly run a business without understanding the numbers. If the corp has the money to reimburse you, it got it from one of three sources- equity capital (you gave it money), debt capital (you loaned it money) or retained earnings (it made and kept money). Otherwise, it probably hasn’t any cash to pay you, in which case it can promise to pay you back once it has money. I do not care for small-corporation shareholders regularly buying things for the corp and getting reimbursed…with small businesses, sloppy books or comingling often result, which in turn lead to higher taxes.
How does a C corp handle reimbursements for first year expenses if the expenses are more than it takes in the first year. For example, it takes in about $1000 and there are about 2K in expenses. Most of the expenses are things i paid out of pocket that are to be reimbursed but not enough income in the corp to pay me. Things such as seminars, etc. that i have a resolution to pay me back.
Not sure i understand. When you say the corp presumably has the capital with debt to pay back expenses, do you mean the C corp will give me a note to pay back the funds not in the account? The expenses are more than the money taken in because of a seminar write off and i just started taking in money in the corp at the end of the year.
Also, i meant to pay back the cost of setting up the corp last year but didn’t, how do i handle that on my corporate return?