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Old 01-16-2012, 11:53 PM
greggovett greggovett is offline
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Join Date: Jan 2012
Posts: 3
Franchise fee expense or asset?

So I bought a franchise in 2011, have done some limited accounting in 2011 getting the company set up. I purchased quickbooks easy start 12 and want to get things set up properly. Since I only had very simple transactions I figure it will be easier to start from scratch. I had previously listed my franchise as an expense but am now thinking it should be an asset when I set up my company for QB 12.
Also, I have put personal money into the account to pay for everything, roughly $30,000, and have a bank account of around $1000 at this point. What would be the best way to record this so I can pay myself back without getting taxed etc. and so that my bank accounts will be accurate
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Old 01-17-2012, 12:27 AM
cojhl2 cojhl2 is offline
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Join Date: Jan 2010
Location: Colorado, SE Washington
Posts: 1,354
Regarding the franchise fee you probably should talk to your accountant about that.

The 30k has to go in as your equity in the business. Payback to you is not taxable, but your taxable income from the business depends on how you have set it up in the eyes of the govt. This is another accountant question..

Good luck in the new business!!!
Colorado Springs and Eastern Washington
QB Pro 2016 used for two farms and personal
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