There is a correct process to go through if you want to lend money to a corporation. First, you must properly document the transaction.You'll need a written loan agreement (promissory note), including the full loan amount, repayment terms, and reasonable interest rates. Made shareholder loans to corp. Now have generated some income that can be used to pay back loans. If the company cannot pay you interest, structure the loan as a Payment In Kind. Yes, you can (and should) charge interest on a loan to your LLC. This item discusses how a backtoback loan is a viable option for shareholders who want to increase their debt basis in an S corporation. For the shareholder, they need to fill out and send Form 1099INT to the corporation. Form 1099-INT outlines any interest paid on the loan.

Corporation Any Loan Without Interest In Cook

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