Your company does not pay Corporation Tax on money you lend it. If you charge interest. Interest you charge your company on a loan counts as both: a business expense for your company05/11/2016 · Yes, you should charge family members interest when you loan them money — here's how muchStates vary, but each has laws regarding lending money. Virtually all of these laws regulate those who lend money on a regular basis as part of a business, but a few still may have application to private loans. Examples may include laws against usury (charging excessive interest), collections methods, and maximum loan you own a business, you can do this by borrowing money to pay your business expenses and then using the money your business earns to pay off your personal debt. By doing this, you "replace" your nondeductible personal interest expense with deductible business it Legal to Lend Money? | SaplingDeducting Business-Related Interest Loan Payments | NoloDeducting Business-Related Interest Loan Payments | NoloDirector's loans: If you lend your company money - you decide to approach banks or finance companies for money, make sure you can make a good case for the loan and you can pay it back on time. Many small business owners have borrowed money at one time. In general, a loan can be a good option if you: will use the money to grow or cover a short-term cash shortfall, rather than as a bailout; can make repayments on time, every time; can pay it off early – but only if this will save you money, eg compare reduced interest …

Tags: