Are loan payments by an LLC considered a business expense? - llc business loans
My son has given the formation of a LLC, a certain percentage of the company is working to buy. He owns a business and the benefits Michael Page with your property. The possible purchase, I am studying the possibility of a large credit for your LLC. If the LLC has elected to be taxed as a corporation, the principal and interest payments on loans against the "benefits" paid to obtain his co-ownership. Qualify or remaining part of the profit is retained by the LLC and taxed at a lower rate of businesses? We try to make the purchase in such a way to minimize taxes, while the capitalization of the loan is repaid. Any help is welcome.
Llc Business Loans Are Loan Payments By An LLC Considered A Business Expense?
2 comments:
Before correct. The principle is an investment in the company where he works. It could be amortized investments gone bad.
Do not tell me what is the company. Personal service companies do not pay a reduced rate for businesses. A medical service provider, select legal, accounting, consulting, etc. Before you apply a secure legal personality of the taxes. S-Corp in May to go a better way.
I would say you have to do a consultation with a CPA before too.
No, this is the loan, a liability in the balance sheet of the LLC. Principal applies to the liability, but the interest is deducted as an expense. From my experience, LLC is generally taxed as partnerships (or S-Corps), in which the benefits of tax revenue is part of the person and taxed marginal tax rate. Any benefit will also be in employment taxes for your child.
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