Business Loans – DougFreemanCPA.com

Making withdrawals from your closely held corporation that aren’t taxed as dividends

Business Loans, Closely Held Corporations, Compensation, Corporations, Debt-to-equity Ratio, Dividend Distribution / By Douglas Freeman

Do you want to withdraw cash from your closely held corporation at a minimum tax cost? The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits.” It’s also not deductible by the corporation. Five alternatives. …

Making withdrawals from your closely held corporation that aren’t taxed as dividends Read More »

Possible tax consequences of guaranteeing a loan to your corporation

Business Loans, Corporations / By Douglas Freeman

What if you decide to, or are asked to, guarantee a loan to your corporation? Before agreeing to act as a guarantor, endorser, or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax consequences. If your corporation defaults on the loan and you’re required to pay principal or …

Possible tax consequences of guaranteeing a loan to your corporation Read More »

Need another PPP loan for your small business? Here are the new rules

(CAA) Consolidated Appropriations Act of 2021, Business Income Tax, Business Loans, Paycheck Protection Program / By Douglas Freeman

Congress recently passed, and President Trump signed, a new law providing additional relief for businesses and individuals during the COVID-19 pandemic. One item of interest for small business owners in the Consolidated Appropriations Act (CAA) is the opportunity to take out a second loan under the Paycheck Protection Program (PPP). The basics. The CAA permits …

Need another PPP loan for your small business? Here are the new rules Read More »

Weighing the risks vs. rewards of a mezzanine loan

Business Credit, Business Loans, Small Business / By Douglas Freeman

To say that most small to midsize businesses have at least considered taking out a loan this year would probably be an understatement. The economic impact of the COVID-19 pandemic has lowered many companies’ revenue but may have also opened opportunities for others to expand or pivot into more profitable areas. If your company needs …

Weighing the risks vs. rewards of a mezzanine loan Read More »