My S-Corp is debt capitalized with a 50K loan. I've spent some on business expenses etc. My s corp now owes the loan money. Also, in my loan agreement, I pay the loan 25% of my NET profits from each rehab I sell. I big percentage, but it's a family loan. Gotta help the fam!!
What would be your best method to set this up in Investor Books to keep track of the loan and money I spend against it and therefore owe it. And also to keep track and divvy up my net profits after selling each rehab? A video or written reply would be greatly appreciated.
Thank You Mike
KyleAnswer from Mike:
First of all, great question Kyle! Let's begin by going back to the basics.
- ENTITY: your S-Corp is an entity and files it's own tax returns. Your answer is the same for LLCs, partnerships, IRAs, and C-Corps. Each are entity and your answer is the same for each.
- BANK Account: you must have a bank account for each entity
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