Jackstar221
Employee Tax Expert

Business & farm

You can deposit it into the business account, but a personal account is suggested, because it is going into your personal account. A W-2 which consists of those deposits, is reported on your personal tax return.

 

When you transfer money from your personal account to your LLC or your business, it is treated as a contribution, which is an equity transaction. Keep documentation of your general ledger in QuickBooks within your equity account, so whoever prepares your tax return will be able to follow the trail and treat the equity transaction as a contribution for money contributed to the business, and a distribution for money taken out of the business.