Hi All:

I launched a new business at the beginning of '06. It's a high-dollar sevice business and we had NO income in '06, but we did land a client that will be paying us in '07.

I received a number of loans from friends and family and will be paying them back in '08. The loans were used to pay living expenses and bills, as well as some business expenses.

I'm currently a sole proprietor but will be going LLC by April.

Now, all that said, should I claim those loans as income for '06, since I 'paid' myself?

Thanks-