qbteachmt
Level 15
09-12-2022
02:49 PM
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When you pay into an escrow such as Security Deposit or Law Firm Retainer, that is sort of like a financial institution holding your money until they use it as needed or return it = the LLC asset. Paying it is not an expense and getting it back is not income. Paying on partner loan and some new expense is new activity, so 2021 was not the end of operational activities after all?
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Don't yell at us; we're volunteers