Owner Equity Accounting before Partnership and Wave entries....

Chetnet

Will try to simplify this as much as possible. Note that we just started using Wave accounting this week for this 2021 year. We have less than 20 txns basically.
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In 2020 until mid 2021, son was sole owner LLC, no bank account for LLC but paid expenses (patent fees, etc) and wrote off on his 2020 taxes. No tax filing was done for the LLC since no income and only those 4 major expenses/investments he reported.
In early 2021, he did have sole owner bank account for LLC but I invested with cash to that account, before we made LLC official 'partnership' and created new bank 'partnership' account, several months later.
LLC still has no income in 2021.
In Wave, we have entered all txns for 2021, including both of our cash contributions for the year, into both banking accounts (all reconciled; original acct is now closed in reality).

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We'd like Owner's Equity (I assume) to show as even for both of us. However, only counting txns in 2021 shows that I would have more Equity, right. (note that I'm new to this and may misunderstand the whole Owner's Equity thing, ha).
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Question 1: How (should we) can we account for his 'investments' from 2020 to show in Wave that owner's equity is exactly 50-50 between us (ie. say we both invested $20k to date, but $6k of his was from 2020)?
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Question 2: We should not have to file taxes for the LLC going back to 2020 if we start with 2021, right? And does the answer from Question 1 change that (I assume not since he wrote that investment off on his own in 2020).
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Hopefully I've provided enough info. Thanks for reviewing!
Chet

PS. not sure why this went into the Accting Technical Discussion?? because I tagged "accounting"? Please move if not right. Thanks.

Mikeg

@Chetnet,
To get equity to match each other (if you both spent equal amounts) then a journal entry should be recorded. Let's say the 6k was spent on office supplies. You would debit office supplies and credit owner equity - John Doe. The entry should be dated 12/31/2020. As to whether the LLC should have filed last year depends on whether it began business.
Excerpt from Form 1065 Instructions
"Except as provided below, every domestic partnership must file Form 1065, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes."

Chetnet

Thanks Mike for the quick response. I think I get what you are getting at, but I need to clarify something (ie. maybe I set this up wrong in Wave app, not sure)............
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Under 'Chart of Accounts'-Equity, there are 2 sections....one is 'Business Owner Contribution', where I created 2 accounts for each of our contributions, like 'John Doe Cap Contributions'. These accounts were used to show deposits into bank account(s) for 2021, and those were reconciled to date accordingly. The 2nd section is 'Retained Earnings: Profit', which is supposed to show Owner Equity I believe. I created 2 accounts for each of us there, like 'John Doe Owner Equity'. These both currently show zero txns and balance.
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Assuming I understand correctly, the txn for 12/31/2020, is accomplished how? I can't figure which Account the debit side would come from? And would I credit that to Contribution account above or the Owner Equity account?
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And also assuming these Contribution and Equity accounts are indeed 2 separate things, do I then enter a transaction debiting Contribution account for the txns already recorded there and credit the corresponding Equity account? In a way, that doesn't seem to make sense since the Contribution txns are already reconciled with the bank account entries??
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Thanks again for reviewing!
Chet

Mikeg

@Chetnet,
The debit represents the expense amounts spent by your partner. I gave the example of office supplies. Debit Office supplies 6k and Credit Owner Contribution 6k.
I would leave the second Equity alone i.e. retained earnings. Meaning, no need to add any accounts. Although once you post that entry you should see a negative retained earnings of 6k. That is because the business spent 6k on office supplies in the prior year and there was no revenue. It was paid for by a partner.