How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask R. Klein, EA Your Own Question

R. Klein, EA
R. Klein, EA, Accountant
Category: Financial Software
Satisfied Customers: 2882
Experience:  A member of the Intuit Ask a Tax Expert team and 10 years as QuickBooks Certified Pro Advisor.
63817126
Type Your Financial Software Question Here...
R. Klein, EA is online now
A new question is answered every 9 seconds

I have a couple of questions about quickbooks.1. how would

Resolved Question:

I have a couple of questions about quickbooks.

1. how would i setup the equity accounts for 5 members of an LLC?
2. Each of the members gave 60 dollars to pay the 300 dollar llc registratin fee here in Texas. We gave 60 bucks to one member and that member used his personal credit card to pay this fee. How would we setup this in each of our equity accounts in quickbooks if company bank account was not even present or the company even registered yet.
Submitted: 1 year ago.
Category: Financial Software
Expert:  R. Klein, EA replied 1 year ago.

fastfile :

Exact equity accounts would depend on whether the LLC is to be taxed as a partnership (in which case you must have separate equity accounts for each partner) or as a corporation (in which case you can have a common equity account).

fastfile :

The basic entry for a corporate entity is that you will increase equity account by $300 and for the 4 members that paid cash, the balancing transaction is the you have $300 increase in organizational expense.

fastfile :

There is no transaction that is separate for the person that paid with his credit card to pay the fees.

fastfile :

Sorry for the misstatement above, just ignore the part about "and for the 4 members that paid cash"....

fastfile :

So, a simple Journal entry...increase equity by $300, and increase organizational expense by $300.

Customer:

we are setting up the company as partnership, which i created each member an equity account with a contributions and a distributions sub account

Customer:

so will we be putting two credits, one for expense and one for the contributions accounts

Customer:

i assumed to debit the expense and credit the contributions equity

fastfile :

For each partner increase their partner equity account by 60 and then increase the organizational expense by 60. Five transactions in all. All are the same.

Customer:

yes, on the journal, i did 5 transactions as a credit to the equity accounts and 1 transaction as a debit to the expense account of the 300. Seemed to work.

fastfile :

ok then you got it.

R. Klein, EA, Accountant
Satisfied Customers: 2882
Experience: A member of the Intuit Ask a Tax Expert team and 10 years as QuickBooks Certified Pro Advisor.
R. Klein, EA and 2 other Financial Software Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Robert M.

    Consultant

    Satisfied Customers:

    2640
    30 yrs. of computer experience in financial and marketing departments.
< Last | Next >
  • http://ww2.justanswer.com/uploads/flopcat98/2009-11-02_004348_rob_suit.JPG Robert M.'s Avatar

    Robert M.

    Consultant

    Satisfied Customers:

    2640
    30 yrs. of computer experience in financial and marketing departments.
  • http://ww2.justanswer.com/uploads/DF/dfmcpa7691/2011-1-9_14443_mainprofileimage.64x64.jpg Doug Millington's Avatar

    Doug Millington

    Certified Public Accountant (CPA)

    Satisfied Customers:

    268
    Bachelor of Science Cornell University 1979 - CPA since 1981 - Certified QuickBooks ProAdvisor - 30+ years experience.
  • http://ww2.justanswer.com/uploads/BB/bbl242003/2010-12-15_24730_mr.BruceBecker.jpg bbl242003's Avatar

    bbl242003

    Accountant

    Satisfied Customers:

    182
    MBA
  • http://ww2.justanswer.com/uploads/AN/AnswerCPA/2011-9-25_161544_Photoprofessionalportraitseptia.64x64.jpg AnswerCPA's Avatar

    AnswerCPA

    Advisor

    Satisfied Customers:

    175
    QuickBooks Pro Advisor
  • http://ww2.justanswer.com/uploads/Leanne0424/2010-09-06_222047_Just_Answer.jpg Leanne Stewart's Avatar

    Leanne Stewart

    Quickbooks Pro Certified

    Satisfied Customers:

    153
    QuickBooks certified, in my own business for 7+ years.
  • http://ww2.justanswer.com/uploads/Welltor/2010-04-30_122105_welltor.jpg David Bennett's Avatar

    David Bennett

    Certified QuickBooks ProAdvisor

    Satisfied Customers:

    91
    16+ yrs exper. QuickBooks Specialist, contract accounting technician, consultant & trainer!
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    75
    Three years as Expert support for Turbotax Ask a Tax Expert, Quickbooks support and use >6 yrs