4 ms·
You have to document it in board meeting, and spell out the terms of the repayment. If you want to keep liability protection. From what I understand, if the opp
by qaexl 18y ago
You have to document it in board meeting, and spell out the terms of the repayment. If you want to keep liability protection. From what I understand, if the opposing lawyer can successfully argue that you appear to be commingling funds and not operate as two seperate, distinct entities. How this is determined is not so much by a clear set of rules so much as a set of heuristics. They look at the formalities you've done, and other things such as how much you have loaned versus how much the corp was capitalized as (laibility-to-equity ratio) -- you'll want to ask your lawyer what is the best way to go about loaning money to your company, how often and how much you can do so.