We sold equity in our company to solely help fund investment activity and some small office expenses. So, we are trying to determine if we need to report this as some kind of income and how to designate such if we need too.
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The money the company received when it sold more shares is not income for the company. It is added capital. The amount is not reported as income and there is no tax on it.
The amount is added to the capital account on the balance sheet of the company.
The money the company received when it sold more shares is not income for the company. It is added capital. The amount is not reported as income and there is no tax on it.
The amount is added to the capital account on the balance sheet of the company.
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