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.
Service Through Public Health | Dr. Jacob Eapen
Transcript: Alan Olsen: Can you share a little about your background? Dr. Jacob Eapen: I was born and brought up in India in a southern part of Indian, a state called Kerala. Did my undergraduate, Doctorate and did my post graduation there and moved to Africa where I was a consultant pediatrician for a…
Holding the Sun, Poems of Inspiration from the Travels of DeAnna Morgan
Interview transcript for the American Dreams Show “Holding the Sun, Poems of Inspiration from the Travels of DeAnna Morgan”: Alan Olsen: Your husband, Randal Morgan, has a documentary film degree out of Stanford, how did get involved in helping with documentaries and what role was that? DeAnna Morgan: I always was in the background with…
The Man Behind Morganstar Media | Randall Morgan
Interview transcript of Randall Morgan for the American Dreams Show, “The Man Behind Morganstar Media”: Alan Olsen: Can you tell us about your background and how you ended up working with Jane Goodall? Randall Morgan: I was a graduate student at Stanford, and had just finished my masters in documentary film, in walks Jane…
Restoring the California Dream | Lenny Mendonca
Interview transcript of Lenny Mendonca for the American Dreams Show, “Restoring the California Dream”: Alan Olsen: Can you share a little about your background? Lenny Mendonca: I went from growing up on a dairy farm in Turlock California milking cows to Harvard where I majored in economics and government. From there I went…