How do you go about giving money to a For-Profit Business?
I am involved in a for-profit S-Corp in the state of FL, and I want to put in some of my own personal finances to help with some startup expenses. Will the corporation have to pay taxes on that money, and will I be able to write it off on my personal taxes at the end of the year? I'm not really looking to be a standard "investor" in the company as I am already involved and hold a percentage of ownership, I just want to know if I can simply give the company the money and if so in a way that it is taxes very minimally. Any advice is welcome! I do infact have two other businesses, one is an S-Corp the other an LLC (Sole Proprietor). Would it be at an advantage to give the money from one of those companies?
Public Comments
- Talk to your CPA. Get him to explain how the tax system works for corporations. The company itself does not pay taxes. The individuals that own the company are the ones who pay the taxes based on the earnings and profit/loss of the company.
- There are really only two ways - equity or debt. You are already an equity investor. Why not just get your stake in the company increased? Clearly talk to a CPA about the best ways to minimize taxes. Do you have another business? Maybe it could invest in the S-corp
