Thank you for the quick response! I wasn't sure whether to put it down as this or capital stock. I was also wondering if I should make it a loan from a shareholder and then recategorize that portion of the distributions as a repayment. Would this be another way to do it? Also, for the inventory I recategorized $1500 of the distributions as a purchase from myself and applied it to cost of goods sold. But is this not a good way of doing it? Lastly, how should I categorize these starting amounts on the Schedule K-1? It seems it would either need to be shareholder stock basis or basis from any capital contributions made during the tax year, but I'm not sure which one. Thanks for your help!
