C-Corporation shareholders

Yadira

I have a C-Corp client who has not generated any income. All she has is expenses for a product in process to launching. She got some shareholders who invested on her product. I'm trying to account for her shareholders, but I don't know how. I only see a K1 partnership worksheet.

Where do I account for these shareholders?

sjrcpa

Capital stock and Contributed capital.

Corporation should be maintaining a stock ledger.

The more I know the more I don’t know.

dascpa

Should you be preparing this return, or should you take some continuing ed first? I'm not trying to be snarky but you should know that a C-corp doesn't issue K-1's, S-corps do.

Yadira

Thank you for your feedback. I will take your comment with the best positive vibe.

Yadira

There's always a first time to it all.

I love posting questions to get the spicy answers, it always works. I really appreciate your response.

dkh

Are they truly shareholders ? Did they buy into the company or just lend money to the company ?

Yadira

Thank you for taking the time.

They are shareholders, some sort of docs was signed with an attorney.

sjrcpa

"They are shareholders, some sort of docs was signed with an attorney."

You should get those. There may be tax return disclosures depending on ownership percent, relationships, type of owner, etc.

The more I know the more I don’t know.