Transfer of cash into company bank account

[wolfie]

All,

I am changing from being a paid employee (26 years worth!) to contracting in the next few weeks. I've set up my Ltd company and have opened a business bank account.

I now need to 'inject' some cash into that account in order to make some miscellaneous purchases. The question I have is: If I transfer money into this account from my personal account, how should I account for it? Can it be a loan, for example.

Any suggestions would be very much appreciated.

[Darren@UptonAccountants]

Loans

All,

I am changing from being a paid employee (26 years worth!) to contracting in the next few weeks. I've set up my Ltd company and have opened a business bank account.

I now need to 'inject' some cash into that account in order to make some miscellaneous purchases. The question I have is: If I transfer money into this account from my personal account, how should I account for it? Can it be a loan, for example.

Any suggestions would be very much appreciated.

Part of it could be treated as you paying for your shares, the remainder as a directors loan.

[malvolio]

No chance you can wait until you have some real company money? What are YourCo's options for an overdraft arrangement for the first month or so? Why not buy stuff for the company and claim it back as expenses as soon as YourCo has some money of its own? If you're buying on account, 30-day terms are not unreasonable.

Golden rule number one - do not ever confuse your money with YourCo's money. Keep them as separate as possible at all times. After all, how much were you willing to pay into your ex-employer's bank account to help them out?

If the only option is to move cash from your account to YourCo's - and I would suggest that is the last resort - treat it as a loan and pay it back as soon as possible.

[wolfie]

Gentlemen,

Thanks for the replies. I shall endeavour to keep any personal monies seperate from the Company.