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Lending money to your own business?

  • 28-06-2011 8:53pm
    #1
    jimidalliance
    Registered Users, Registered Users 2 Posts: 79 ✭✭


    Hey! I am looking for some advice, I am starting up a new business and was wondering, can I 'loan' the business some money that I have saved in order to get it off the ground and then simply take it back out when things are flush, or how does that work?? Can I take the money back out without it being taxed?

    Any advice would be much appreciated

    Jim


Comments

  • #2
    djk1000
    Closed Accounts Posts: 899 ✭✭✭djk1000


    Yes, if you loan money to the business, you can take it back out without being taxed since you've already been taxed when you earned it in the first place.


  • #3
    tenchi-fan
    Closed Accounts Posts: 3,339 ✭✭✭tenchi-fan


    It's called "capital"
    Look it up.


  • #4
    jimidalliance
    Registered Users, Registered Users 2 Posts: 79 ✭✭jimidalliance


    Great thanks djk1000!!


  • #5
    Yahew
    Closed Accounts Posts: 2,491 ✭✭✭Yahew


    tenchi-fan wrote: »
    It's called "capital"
    Look it up.

    He is looking it up. Here.


  • #6
    kilburn
    Registered Users, Registered Users 2 Posts: 3,912 ✭✭✭kilburn


    tenchi-fan wrote: »
    It's called "capital"
    Look it up.

    very rude:o


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  • #7
    paul71
    Registered Users, Registered Users 2 Posts: 3,323 ✭✭✭paul71


    tenchi-fan wrote: »
    It's called "capital"
    Look it up.


    In fact it is not called capital, it is called a directors loan account.

    A director may introduce funds into a company via the directors loan account and withdraw it again at a later stage without any tax consideration.

    Capital on the other hand is the introduction of funds by means of buying ordinary shares in the company and it may not be withdrawn from the company without a tax implication.


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