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investing into your business

  • 05-06-2007 8:52am
    Closed Accounts Posts: 31 ✭✭✭ firefix

    Hey guys

    I wanna put money into my business (limited) but i'd love to know the best way of putting it in so i dont get screwed taking it out

    Im putting it in, in two ways.

    1) Loan from myself of around 3 grand
    2) I've taken out equity from my place of 20g and will be investing this into the business. Any ideas of the best way of putting this into the business too.

    i would really appreciate the advice, Thanks


  • Closed Accounts Posts: 362 ✭✭ information

    Loan the company the money and you can simply pay back the loan with not tax problems.

    You could also look at the seed capital tax relief, you have to buy shaes in the company for this, but you can claim tax back.

    not sure what you mean in 2)

  • Closed Accounts Posts: 31 ✭✭✭ firefix

    Thanks for that. i thought i would have to pay tax on the loan though.

    Sorry i made a spelling mistake in my message. I have added 20g onto my morgage which means i have to pay around 140 extra for this every month. I havent a business account yet so i have put the 20g into my personal account. I plan to loan this 20g to my business but is it okay if i just transfer the140 euros every month from my business into my personal account to pay the loan. Would this be questioned? Would i be taxed on this too? I know its very confusing.:mad:

  • Closed Accounts Posts: 362 ✭✭ information

    At what part of the process did you think you would have to pay tax on the loan?

    You loan the company money.
    The company pays you back the money.
    There would only be tax if you charged the company interest.

    It's fine for the company to pay you back the loan in what ever way it sees fit, ie 140 per month.

    its usually written 20k not 20g.

  • Closed Accounts Posts: 31 ✭✭✭ firefix

    Oh okay. Thanks for that. I, for some reason, keep thinking that any money paid out from a company whether it be a loan, bonus..ect has be be taxed. I guess it doesnt make sense on a loan. I appreciate the advice. Yeah i always say 20g (for 20 grand). Its just a bad habit.

  • Closed Accounts Posts: 189 ✭✭ AidoCQS

    Did you work stateside?, that is very much the case in the US, there is a common saying amongst small business owners, always use somebody else's money - never your own.

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