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Old 01-20-2007, 07:17 AM
TMZ TMZ is offline
Senior Vice President
 
Join Date: Oct 2006
Posts: 104
Re: Loan taxation question

the various sources of monies represented capital to get the entity off the ground. Loans to owners/officers are permitted and should be recorded as such, "Loan to Owners' supported by appropriate documents, terms, interest, etc.

You state you are a 'sole owner' but further into your query you indicate 'we.' Which is it? For Federal tax purposes a single owner llc is considered by the irs as a disregarded entity, or P/L flows thru to the owner, SE tax, etc. Hope you're aware. since you mentioned company is presently a sole owner and soon will be llc. i see no difference as sole owner or one owner llc.

Depending on state, a service llc will not protect owners against claims of negliglence, professional malpractice, if you're licensed professional.
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