November 20, 2011
Shareholder Loans in excess of $10,000

If a shareholder loans in excess of $10,000 to the S corporation, we will need to impute interest on the loan. This is a time consuming process and causes other technical issues, so we strongly suggest that if you loan more than this amount to your corporation that you consider converting the loan to equity. Please call Nancy Vaccaro at our office if you need more information on this important topic.