I have a S corp that started 7/22. I took out a personal loan, a vehicle loan and used a credit card to start the business. I have paid my mortgage, utility bills, groceries and loan payments out of the business account. How do I set up these expenses in Quickbooks?
Hello YTLD
Thank you for reaching out with your question.
While it is the best and important to not to mix business and personal expenses on your S Corp business account.
Any unavoidable personal expenses you incur out of your business account should be treated as Owner withdrawal and booked as such. There is no need or reason to set up detailed accounts for owner's personal expenses (like utilities, groceries etc. ) in your business QuickBooks.
Hope this is helpful
Thank you for the reply. I understand now that it’s considered commingling as I had no idea before. With the owner withdrawals would I then issue myself a 1099 since I am not receiving a payroll check ( which will begin next year)?
Hello again YTLD,
you do not issue yourself a 1099 for owner drawings.
As a S Corp owner you are required to pay yourself a reasonable Salary compensation. Should I pay myself a salary as an S-corp owner?