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  1. #1

    Default Loaning Money To My Business

    My question involves business law in the state of Illinois

    I am sure this isn't the most appropriate place to ask this question but I would appreciate any direction. I am going to start my own LLC and will need to have captial in order to pay for material that I will resell as cost of good sales. If I lend my company money through my personal savings account can I have my company repay that loan back?

    Thank you for lending your experience and knowledge.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Loaning Money To My Business

    You can loan money to your own business. It can repay the loan, if it has the resources to do so.

  3. #3
    Join Date
    Jul 2007

    Default Re: Loaning Money To My Business

    Make sure you document the loan as a legitimate loan with a written promisory note specifying an interest rate and date by which to repay, which could be on demand. Otherwise, the IRS may consider it paid in capital rather than a loan. Document everything, don't just move money in and out of the business informally.

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