I have a LLC taxed as an S Corp. I make deposits each month to the bank account to pay bills. Is this cash considered a contribution to be listed in stock basis?

[TomYoung · Accepted solution]

I assume that the first sentence pertains to cash you take out of your personal bank account and deposit in the S-Corp's bank account because the S-Corp doesn't have enough cash.

If that's the case the "more proper" accounting would seem to be the creation of a "Loans from shareholder" liability on the S-Corp's balance sheet.

Tom Young