Article Date:
August 2023


Word Count:
475

 

 

Are Corporate Advances to the Owner Loans, Dividends, or Salary?


If you operate your business as a C or an S corporation and if you loan money to the corporation or the corporation loans money to you, you need documentation that the loan is a loan.

 

With the S corporation, the loan that fails as a loan can result in taxable wages to you.1

 

With the C corporation, the loan that fails as a loan can result in taxable dividends to the shareholder.

 

Good News, Bad News

 

Nariman Teymourian got a real shock when, ... Log in to view full article.

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