[philiphodgen]

If the amounts are small, don’t bother lending to the company. Just make a capital contribution.

Loans must be interest-bearing. This makes your life as an entrepreneur more complex. Your tax return and the corporate tax return will cost more to prepare.

Optimize for simplicity in legal structure, bookkeeping, and tax return preparation.

(1) Why corporation?

(2) Why C corporation?

(3) Unless you’re injecting multiple millions of your own money into your new venture, whatever perceived tax benefit you can imagine will be dwarfed by the overhead and cognitive opportunity cost of getting clever.

(4) If you add investors, the first thing they’ll want to do is clear all the bullshit off your balance sheet. Why add it in the first place?

Just contribute capital, unless you can think of a damn good reason to do otherwise.

You need real tax advice. Go get some.

[moezgholami]

This was really helpful. Thanks. Plus one on the tax advice.