funding, investment, s-corporation, corporationI have a startup S-corporation, which I expect will operate for several months “at a loss”, before it starts earning good money.
I initially [under-]funded it as “initial purchase of shares” with my personal savings, and I also made my kids minority share-holders. There is still a lot of un-issued stock left.
I would now like to use some of my own savings to add funds to the S-corp, to cover its expenses and hire employees. What is the best way to do this, such that it reduces my & S-corp’s taxes (possibly by initially resulting in a loss against my overall income), and generally makes the most sense?
To be honest, all the options above are valid (though you would have to check on the tax rules). However, if your only concern for purchasing more stock is that it will dilute your kids’ shares, you have a few options.
Lending might be a bit more complicated (I’m no expert), since you would most likely have to have a contract and such, and that may prove to be more of a hassle farther down the road, since your company will essentially owe you money, and you will have to include that in reports and the such, as well as possibly pay taxes for the amount received when you get repaid, since it was income.
you can lend money to your company as private investor , put some interest that you can deduct from company tax
Depends on what country you are located in :)
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