topic Moving funds from S Corp to its DBA in Business & farm

Moving funds from S Corp to its DBA

k2allar — Thu, 06 Mar 2025 16:37:08 GMT

Hi - I have an S Corp and recently established a DBA under that S Corp. To fund the expenses of the DBA, I needed to move money from the S Corp checking account to the DBA checking account.

How should I treat that on my taxes?

Thanks!

Re: Moving funds from S Corp to its DBA

Mike9241 — Thu, 06 Mar 2025 16:40:34 GMT

you moved money within your s-corp. It is neither income nor an expense. in effect, you moved money from one bank account to another with the sane entity.

Re: Moving funds from S Corp to its DBA

k2allar — Thu, 06 Mar 2025 17:26:37 GMT

So you're saying that if I just combine the transactions and balances from both entities, I'll account for that money without showing it moving between the two accounts, right?

Wow. if that's right, it's much too simple!

Re: Moving funds from S Corp to its DBA

DaveF1006 — Thu, 06 Mar 2025 21:16:34 GMT

Yes, this is correct. ‌When you transfer money from your S Corp's checking account to the DBA's checking account, you're moving money within the same legal entity. This transfer isn't considered income or an expense for tax purposes. It's simply a reallocation of funds within the same entity

Re: Moving funds from S Corp to its DBA

Rick19744 — Thu, 06 Mar 2025 22:22:22 GMT

Curious why you have separate bank accounts?

Are both of the business accounts tied to the same EIN?

Hopefully both bank accounts are reflected on the S corp financials?

Re: Moving funds from S Corp to its DBA

k2allar — Sun, 09 Mar 2025 16:26:22 GMT

Thanks, Dave

Re: Moving funds from S Corp to its DBA

k2allar — Sun, 09 Mar 2025 16:27:15 GMT

Rick - it's to keep the revenue and expenses separate for management purposes.