Let’s say you just started a new business—congratulations! When you contribute to your new business at the outset, as well as when you contribute again at a later point, that capital contribution and those of the other owners need to be tracked somehow. Enter the Capital Account.
A Capital Account is a general ledger used to track contributions by owners and the valuation of the business. This applies to partnerships, LLCs, and S-Corps but not Corporations. Keep in mind
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