Expense items paid by shareholders personally? -

say you have an equipment to expense. Instead of paying for it from the corporate account, is it ok if the shareholders paid for it out of their personal accounts but the item is meant for the company and is only used by the company?

It is always best to pay for business expenses through the business account. But if the business cash flow is tight you can do it. Either record it on the company books as additional paid in capital for the shareholder that bought it or as a loan payable to that shareholder. The second does not affect the shareholder s percentage of ownership; and when the cash flow improves, the company pays the shareholder back.