To decode that for non-USA readers: By “Sub S corp” Fran means https://en.wikipedia.org/wiki/S_corporation <https://en.wikipedia.org/wiki/S_corporation>.
Regards, John Ralls > On Feb 5, 2018, at 6:13 AM, Fran_3 via gnucash-user > <gnucash-user@gnucash.org> wrote: > > Maf, > Thanks for the response and the info. In our case we are a small USA Sub S > corp. > I think I meant to say "distributions" and not "disbursements" ... so clearly > no accountant here :-) > Some info on USA Sub-S Corp's "distributions" here: Taking money out of an S > corporation > I think what we were looking for was how to account for a loan to a > shareholder... and ended up putting it under Assets as it is money owed the > business. > Regardless, our use of gnuCash will be scrubbed at year end by a professional > accounting firm... that said we want to be as close to 'correct' as possible > :-) > gnuCash is the next step in our accounting system process... > 1 - left pocket, right pocket2 - paper and pencil3 - spreadsheets4 - gnuCash > :-) > I'm sure I will have more questions so thanks for the help all ! > Fran3 > > > > > > > > > | > | > | | > Taking money out of an S corporation > > S corporation owners may take money out of the corporation in a variety of > ways, such as in the form of wages an... > | > > | > > | > > > > > On Sunday, February 4, 2018, 5:52:07 PM EST, Maf. King <m...@chilwell.net> > wrote: > > On Sunday, 4 February 2018 20:39:02 GMT Fran_3 via gnucash-user wrote: >> Geert, >> There are three ways (that I know of) for a shareholder or owner to get >> money out of their business...1 - Pay themselves as an employee2 - Loan >> themselves money3 - Discernment- which is like a "dividend" payment to >> shareholders ( I think) But I'm no accountant... so someone else will >> surely weigh in on this. When is gnuCash 3 going to be released? > > Hi Fran, > > I'm not an accountant (or lawyer) either, but I have to say that what you've > written isn't my understanding of (UK) corporate law. I don't know where you > are in the world, so the below may only be partially true for you. > > 1. a shareholder of a ltd company can't take a wage unless they are also an > employee (directors are employees). Often in small & family firms the > shareholders are directors, but the 2 roles are distinct & must not be > conflated. If you're not clear about this, maybe talk to an accountant? > > 2. A loan. not really getting money out of the company, as it should be paid > back in due course. there are (in the UK, at least) some pretty stringent > anti-tax avoidance rules around loans, too. Record as something like > Asset:Bank:Current -> Asset:LoansGiven:JoeBloggs > > 3. IIRC, the term you want might be disbursement. Yes, dividends are the > usual way shareholders get money from a ltd (or plc) company. I record them > as transfers to Expenses:dividends. My accountant has never complained. > > 4. you didn't mention selling shares. Again, a tax & legal minefield where > professional advice is required. But it is a way of getting money as a > shareholder. > > Note. I don't download transactions, so I'm not sure about this "assign as > payment" workflow you talk about. All my transactions are either entered > directly in the registers, or for bills / invoices through the "Process > Payment" buttons which are outlined in the docs. > > > HTH, > Maf. > > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
