A client I have prepared the 1120S for the past two years is deciding to close at the end of the year. There are two 50/50 shareholders who own the company. They have accumulated approximately $33,000 in credit card debt. The debt is on a company credit card.
They have inquired as to exit strategies and ways to handle the debt of $33,000. I do not have vast experience in corporate returns, but my inclination is to believe that they must pay these debts from their personal funds once the business is closed.
Is there any other way to handle the debts?
Appreciate the help!
They have inquired as to exit strategies and ways to handle the debt of $33,000. I do not have vast experience in corporate returns, but my inclination is to believe that they must pay these debts from their personal funds once the business is closed.
Is there any other way to handle the debts?
Appreciate the help!
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