I am currently in the process of getting a new business setup. My partners and I have a lawyer and have incorporated and setup all of our legal paperwork. Since these things just got setup, I do not have a bank account yet nor have I purchased my accounting software (will be getting Peachtree).

So far, pre-startup expenses are minimal (mailings, etc) but I am going to be paying the first bill my attorney sent us. Since the corporate books and bank accounts are not setup, I will be paying from my personal checkbook.

My question is how do I account for this when I get my books setup in Peachtree? Is there a way I can roll this into my equity stake?

Its not huge dollars, but its sizeable compared with my contribution to initial equity. My other partners/founders will not be laying out any money during pre-startup, so their equity buy-in is fairly simple.

I guess I am wondering what accounting transaction, if any, I could make to bring this expense into the company, either as an expense or as part of my equity contribution.

Any help would be much appreciated. Thanks in advance.

I was in the same boat as you in my recent startup. The answer is simple really. YOU pay the bill and hold onto the bill until the bank account is setup, then you submit the bill to your company which cuts you a check.

Simple receipt reimbursement really. It's the same as if you have work vehicles and an employee puts in gas from out of his pocket. He gives you the receipt and you cut him a check.

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-Grumpy

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