Funding a new corporation - Posted by Mark

Posted by Jeff on July 28, 2000 at 08:13:16:

I just am getting my corp up and running. I opened a checking account for my co., and “assigned” one of my personel credit cards to my company. I am about to loan my company funds from my personel line of credit to help it pay it’s bills right now. Try to keep everything separate and well documented. In the case of my lending money to my company from my line of credit, I have to write a promissory note for repayment to me, and to keep everything legit, I am charging myself about 1/2% interest point higher than my LOC. Which I will personally declare on my taxes as income next year.
It’s not hard to draft documents, I find getting the time to document is the hard part. It helps if you have a mentor, or someone you can bounce ideas off of. But that is the nice thing about this board. I would recommend getting Bronchick’s Bulletproof corporation. He has all the forms, and how to do everything step by step, And your company can deduct it (about $150).
Good luck!

Funding a new corporation - Posted by Mark

Posted by Mark on July 28, 2000 at 06:20:09:

I just formed a C Corporation to use for real estate investments and other opportunities. I’m just getting started and haven’t done any deals yet. I’ve been paying for advertising, corporation fees, books, etc. out of my own pocket. How can I set it up to be reimbursed by the company once it starts making money? Do I simply write myself a check (I’m keeping all receipts) or would it be better to have a loan from myself to my corporation? If I do that, I assume I can charge the corporation a fairly high interest rate. Does anyone have a loan form they would be willing to share?

Any advice would be greatly appreciated.

Thanks.

Mark