USA How to pay self in a family-owned LLC from the borrowed funds


Joined
Dec 10, 2021
Messages
1
Reaction score
0
Country
United States
I have a small startup LLC owned by my family. We received an SBA loan and going to use it to create our new product by paying ourselves. We usually paid ourselves as draws from earnings converted into capital contributions. However, the loan is a liability and cannot be used as capital. What is the best way to use the funds from a liability account to pay ourselves and how should it be taxed?
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top