SHAREHOLDER LOANS TO S CORP
See original discussion at http://www.taxalmanac.org/index.php/Discussion:SHAREHOLDER_LOANS_TO_S_CORP
I have a new S Corp client. He told me that he is planning on making period loans to the company on an as-needed basis. He will receive annual interest based on the balance and get repaid as the company sees fit (meaning $500 here or $400 there, when it can afford it). Can he do this?
I was under the impression that a personal loan to a S Corp should be for a specified amount of money. Can he make intermittent loans as he said? Is this legal? How would you handle this?
( Asked 03/12/07 11:02 PM in TaxAlmanac, Views by community 42 )