Hello IH,
I am planning to put some money into my company account. I know I can term this as "investment" or "loan". Let us say this amount, for now, is $2K.
I am trying to understand the steps in this transaction. So for example:
I want to be sure I am following the right steps. I am in an early phase and do not an accountant.
Looking for helpful responses.
Thanks
Ordinary citizens are not a bank: they do not require collateral, do not arrange long inspections, are much more tolerant of the size of the business, the history of its existence and seasonality. For this loyalty, borrowers offer double-digit returns to potential investors. The easiest way to lend to small businesses is through multiplying crowdfunding platforms or buying bonds on the stock exchange. Mini issues are profitable, but only if you know how to apply them. I tested the strategy on 1fairgocasino and decided I would only invest, no debt for the business.
If I were you, I would take a loan from https://hurtigudbetaling.dk/. Banks are not always fair in their assessment of risks and my capabilities. But it is a pre-approved offer, not specifically approved. That is, there is still no guarantee that you will get money on it. You still have to go to the bank and fill out an application. And the lender has the right to ultimately refuse to grant you a loan. For the most part, such messages are just a marketing ploy. Many banks send them indiscriminately to everyone. They have a database with phone numbers of citizens, and alerts are sent to all of them.
You need to decide how to ascribe the transfer of the money to the company's benefit.
If an investment there may be tax benefits if an investment and there might also be benefits if it is a loan.
If you transfer the money without a record of it, and you decide to repay yourself (or repay yourself with interest) then when it comes to doing your accounts you will need to decide how to phrase this transaction and also have it documented. Hence, why you should have it documented up front.
As set out below -it's based on your location and tax laws. I am not aware of position in Canada.
I think this will strongly depend on the country. Is your company in Canada?
Yes, Nova Scotia, Canada