Distributions from a private company

M

m22au

I am considering setting up a US company to trade through.

The three ways of paying myself (the individual) from the company are:

a. salary
b. dividends
c. loan from the company to myself

If I did one of the first two, I would have to pay personal income tax.

What are the US tax ramifications of the third option - loaning money to myself (individual) from the company?
 
Thanks for your reply funky.

I read your thread and it seems to be more about non-US companies.

Any ideas about the tax treatment (if any) of loans by US companies to shareholders?
 
i know that you can setup a c-corp and create a pension plan of any sort. then that pension can loan money out for purchases. but there is no legal way around paying taxes. maybe a way to defer them but this can be a very complicated structure, and thus very expensive and possibly prohibitive.
 
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