I have a newly incorporated Startup - pre-revenue and pre-investment. I also have an incorporated Consulting Business which I am winding down to 'maintenance only ' mode as I ramp up to full time in the startup. Fort he Startup I am using the laptop, printer, cell phone, office furniture, etc. that are all owned by the Consulting company. Is that an issue? Should i talk to my accountant about a transfer of assets? Have they depreciated enough to be worthless anyway (all 3 years old). It wouldn't make sense to purchase all new provisions for the startup. But should the Startup compensate the Consulting company?
The items that you're talking about in this situation would be immaterial in my opinion. Before you even get to the technicalities of accounting properly for something like this, do you really want to start a new business where your first transactions on your financial statements are transferring assets (furniture is not an asset even) that are all worth essentially nothing right now? Your entire focus should be on getting customers and not speaking with an accountant about the treatment of something that doesn't matter.
Answered 10 years ago
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