Thinking About Loaning Cash to Your Business?
Are you looking to start a business, or is your current business in need of some cash? Maybe you can’t get a loan from a bank, or maybe you would rather not use a bank. What about lending some of your own money to your company? Can you do that? Yes, you can, but you’ll need to make sure you do it right.
The first thing to be aware of is the need to document your transaction properly. If you decide to loan your business cash in order to purchase more inventory but your company defaults on the loan then you might be able to write the loan off as a business bad debt instead of a loss from an investment.
A business bad debt is helpful because it can help offset other ordinary income like interest and dividend, and W-2 income. It can also serve to create a net operating loss on your individual return in the event that your income is not high enough to offset your business loss.
There are many other aspects of lending money to your corporation and important steps you should take in order to do it right. You can learn more about the process of lending money to your corporation by clicking here. If you would like to speak with us personally then give us a call at 1-877-CPA-2006 or click here to contact us.
Top Diets for 2017
Top Diets for 2017 What’s the best diet plan in the world? The answer to that question all depends on whom you ask. Perhaps the real question is do diets even work at all? There are countless studies that say otherwise. However, in reality, we all have a diet. Even if your diet consists of…
Top Golf Competitions for Fall 2017
Top Golf Competitions for Fall 2017 The golf season is winding down in many parts of the country. If you live in a sunny part of the country, like Hawaii, Arizona or California, then you can keep playing year-round. Of course, for those diehard hackers that can never get enough time on the links a…
Stock Dividends or Buybacks?
Stock Dividends or Buybacks? Anyone who invests in the stock market wants to make money. Of course, the most traditional way to do this is buying a stock low and selling it after it increases in value: a capital gain. However, investors can, and do, make money from their investments in other ways, including buybacks…
How to Find the Right Dividend Growth Stock
How to Find the Right Dividend Growth Stock How many great ideas for a startup do you know of that never really got off the ground? Startup companies are a dime a dozen and the majority never become successful. Even some of the best ideas and coolest technologies fail to reach their full potential. These…