Capital Contribution Log — How To Use

How to log personal-paid firm expenses toward LLC basis

Version 1 · June 29, 2026 referencefirm-opsfinance

Content

# Capital Contribution Log — How To Use

_Lives in: 07 — Firm Operations_

## What this is

Every time Addison or Sam pays for something on behalf of Confluxion Point — domain renewal, software subscription, hardware, contractor work, marketing spend, cash injection — it goes in this log.

Why it matters:
- Tax basis: counts toward each cofounder's basis in the LLC (matters at exit or buyout)
- Fairness: if one cofounder ends up putting in more, you can true it up via future profit distribution or have the LLC reimburse later
- Audit trail: if you ever take outside money, raise debt, or sell, you need a clean record

## Where the log lives

The CSV is at `~/Desktop/Confluxion Point/internal/capital-contribution-log.csv` on Addison's machine. NEEDS TO BE UPLOADED TO THIS FOLDER as a Google Sheet so Sam can see it too. (See "Upload steps" below.)

## Upload steps (one-time, Addison)

1. Open Google Drive → New → File upload → choose `capital-contribution-log.csv`
2. Once uploaded, right-click → Open with → Google Sheets
3. File → Save as Google Sheets (converts to native format so formulas work)
4. Share with Sam (Edit access)
5. Move it into this folder ("07 — Firm Operations")

## Columns

| Column | What to put |
|---|---|
| Date | YYYY-MM-DD format. Date you paid, not date you logged it. |
| Contributor | "Addison" or "Sam" — exactly that, so the SUMIF works |
| Description | Plain English. "Lemlist annual subscription" not "tool" |
| Category | One of: Software, Hardware, Services, Cash, Domain, Marketing, Legal, Other |
| Amount (USD) | Pre-tax amount. Number only. No `$`. |
| Payment Method | Credit card / Wire / Check / Personal cash |
| Receipt / Reference | Link to receipt (Drive folder, email) or invoice number |
| Reimbursable? (Y/N) | Default N (treated as capital). Y only if the LLC will pay you back from revenue. |
| Notes | Anything else worth knowing |

## Rules

1. Log within 7 days of the spend. Memory fades fast.
2. Default to N (non-reimbursable) — treating contributions as capital is cleaner for taxes than reimbursing yourself.
3. Don't log purely personal stuff — only things actually used for Confluxion Point work.
4. Keep the receipts — somewhere accessible. Drive folder works. Email confirmations work.
5. Talk about the running totals quarterly — if one of you is way ahead, decide together how to true up.

## Examples of things that go in here

- Domain registration (confluxionpoint.com)
- Email / Google Workspace subscriptions
- Lemlist / outreach tools
- LinkedIn Premium
- Insurance premiums (E&O, GL)
- Legal fees (LLC filing, lawyer reviews)
- Hardware bought specifically for client work
- Marketing spend (ads, sponsored posts)
- Contractor payments (designer, accountant)
- Cash transfers to the business bank account

## What does NOT go in here

- Personal phone bill (even if used for some Confluxion calls)
- Personal laptop (unless purchased specifically for Confluxion)
- Coffee meetings (unless the business pays — then it's an expense, not a contribution)
- Time worked (that's sweat equity, tracked separately via vesting if you set it up)

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_Last updated: 2026-05-25_

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