Start Up Money

[VocalNeal]

If someone could with little effort answer this question I would appreciate it.

If one has a business using the S in SME. If I am a partner in the business can I loan the business money for start up and inntial expenses? I was thinking to offer an open line of interest free credit up to a maximum. That way the money could be repayed tax-free.

I just need an accounting answer not a don't do it answer.

Thx

[Chang_paarp]

As with any question here, get real professional adivse.

Having said that, my understanding is that you can do that, it may be able part of the initial capital, but check on that part. If it is a loan you can even charge interest, not sure of the tax implications there. Leave a paper trail, so you can show what has happened, other directors signing agreement and so on, just cover your backside. The loan has to show on the company books.

[VocalNeal]

As with any question here, get real professional adivse.

Having said that, my understanding is that you can do that, it may be able part of the initial capital, but check on that part. If it is a loan you can even charge interest, not sure of the tax implications there. Leave a paper trail, so you can show what has happened, other directors signing agreement and so on, just cover your backside. The loan has to show on the company books.

Thx,

I was thinking more along the lines of all outgoung monies being part of a line of credit untill income exceeds overheads. Then I could be paid back. As you can see I am not an accountant:-)

[Chang_paarp]

You can look at the investment as 2 pots of money.

1) You investment to buy in

2) What you lend the company to get it on it's feet. If you have the assets this funding can come from a bank, but in Thailand (or most countries) that is very unlikely. They will lend you money if you canprove you don't need it.

Good luck

[soundman]

They will lend you money if you canprove you don't need it.

Good luck

I have to say that is the funniest & trueist comment I have ever heard about banking.

When I was eighteen with no money & starting out, no bank wanted a bar of me & what I was doing. When I was thirty with nearly a mil. in assets of various forms, banks were falling over backwards to try & get me to use their services, they were almost as persistant as the tax man.

Cheers,

Soundman.

[VocalNeal]

I have to say that is the funniest & trueist comment I have ever heard about banking.

When I was eighteen with no money & starting out, no bank wanted a bar of me & what I was doing. When I was thirty with nearly a mil. in assets of various forms, banks were falling over backwards to try & get me to use their services, they were almost as persistant as the tax man.

There is an old story about a young John Cleese who was called to his bank managers office to explain when he would repay his debt. Many years later when he was famous and had some money, he wrote to the bank requesting that the manager come to his house/office to discuss his account. When the manager declined on the basis of bank policy. JC response was "When I was young and had no money etc...and either you come here and discuss or I close my account and move to another bank"....When the manager arrive JC offered him a cup of tea and they never discussed money!!