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Shareholder Loan From Corporation

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    #1

    Shareholder Loan From Corporation

    100% C-Corp. shareholder wants to borrow $50,000 from the Corp. Will pay $1,000 monthly and 3% interest.

    I looked at the AFRs and, as I read this the rate is 2.63 if compounded monthly.

    Am I correct in assuming that this loan is NOT a below market interest rate?

    I addition, there will be a board resolution authorizing the loan, there will be a written promissory note, the books will have a loan account set up. Will have payments come from shareholders personal bank account and deposited into the Corporate account monthly.

    Does this scenario seem to be a reasonable approach?

    Bob
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    #2
    Shareholder loan

    Doesn't anyone have any experience or thoughts on this post?

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      #3
      Seems fine

      in fact, it seems like the best organized loan to shareholder I've ever seen.

      ATG
      "Congress has spoken to this issue through its audible silence."
      Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

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        #4
        Thank You

        Thanks for the feedback. I try and try to do the right thing and this forum gives valuable insight, reassurance, and correction.

        Bob

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