USA S-Corp


Joined
May 16, 2018
Messages
1
Reaction score
0
Country
United States
I had a question I wanted some opinions on. Two owners of an S-corp have loaned the S-corp funds for various reasons over the past few years. The loans are documented stating they are loans but there is not interested that was charged. Most loans were over $10k.

What are the possible negative effects of this in case of an audit? I understand the IRS could consider these to be capital rather than loans.

The S corp has never had a profit.

Thanks for your thoughts!
 

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

Similar Threads

USA S-Corp comp question 0
USA Filing inactive S-Corp 0
USA S Corp Distributions, Commissions/Bonuses for multiple equal shareholders 0
USA Dissolving an S corp 0
USA LLC owned by S-Corp 0
USA S CORP - withdrawal 2
USA Small Business 20% Deduction vs S-corp election? 0
USA S-Corp Questions 1

Top