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Subject:
Paying a personal loan with business funds
Category: Business and Money > Accounting Asked by: klyn-ga List Price: $5.00 |
Posted:
27 Apr 2006 17:19 PDT
Expires: 27 May 2006 17:19 PDT Question ID: 723520 |
My husband and I have recently formed a Limited Liability Company which is considered to be a partnership for tax purposes. We require start-up capital, and we're considering a "personal loan", as they're much easier to get than start-up business loans. My question is this: if I take out a personal loan in my name, inject that money into the business, then pay it back out of the business's funds, will those monthly payments be considered my "income" from the partnership (and therefore be subject to self-employment tax)? |
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There is no answer at this time. |
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Subject:
Re: Paying a personal loan with business funds
From: daniel2d-ga on 27 Apr 2006 20:29 PDT |
No. You should develop a relationship with a CPA so you can get these types of questions answered during the course of your business. I am sure there will be others. |
Subject:
Re: Paying a personal loan with business funds
From: ubiquity-ga on 28 Apr 2006 11:05 PDT |
Only the interest you pay to yourself, if any would be income. And it is not a wage and therefore there are no payroll taxes. Thinks of it as being no different that buying a CD or a bond and earning interest. |
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