In this Tax Tip Tuesday, we look at a question that business owners will face at some time with their business. Can I borrow money from my business?
This is part of our three part series on how do I take money out of my company?
Borrow money from my business.
The final way to take money out of your company is as a loan. This essentially means you are being loaned money from the company. The thing to remember here though is that your loan is a ‘balance’ and takes into account both money you have taken out of the company as well as money you have put in.
What we generally find with our business clients is that to start their business, they normally put in a fair bit of their own money. Let’s say you put in $20,000 to start your business. Using this scenario, you can take out up to $20,000 tax free before triggering any loan amount owing by you to the company. Continue reading “Tax Tip Tuesday: Can I borrow money from my business?”