QB Issue Resolution:

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing – you record value you take from the business here
>> Equity Investment – record value you put into the business here

LLC means nothing in terms of accounting, that is only a state registration concerning company liability

There are several ways to do paying with personal funds, I prefer:
1. Create a dummy bank account called owners, use write checks (do not print them, they are just a form for entering transactions) on that account to enter and pay the bills/expenses.
2. When you are finished, the balance will be negative, make a deposit for the total amount and in the account block select owner equity, or better owner equity investment

Technically a contribution to the partnership is income (unless they are from a partner of course), better to have relatives contribute to you personally, and you invest personal funds in the partnership using equity investment, and paying the license fees.

Capital is used when talking about c- or s-corporations, sole proprietor and partnerships have equity accounts.  The reason for the distinction is the tax laws regarding what and how you do things with equity vs capital.

Resolution for Issue 'How do I record expenses paid from my personal account that happened before I had a business account and capital invested from a 3rd party? My wife and I started our business backwards by jumping in with both feet. The expenses quickly started to pile up. We were paying from personal accounts and a family member has been contributing license fees. We formed an LLC partnership and opened a business account and Quickbooks today. How do we record those business expenses that we incurred prior to having business accounts and how do we record the capital contributions?' available: Yes (Solved).
Source: Intuit Community forum.

How do I record expenses paid from my personal account that happened before I had a business account and capital invested from a 3rd party? My wife and I started our business backwards by jumping in with both feet. The expenses quickly started to pile up. We were paying from personal accounts and a family member has been contributing license fees. We formed an LLC partnership and opened a business account and Quickbooks today. How do we record those business expenses that we incurred prior to having business accounts and how do we record the capital contributions?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for QBO
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!

Error Recovery for QBO [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.

Get 50% off Quickbooks Online

Click Here for 50% off!

Additional Support Options: