As a sole-proprietership LLC owner, I made a $40k loan to my LLC using after-tax funds. Even if the LLC pays the $40k back, this repayment does not deduct from net income. How do I avoid getting taxed on the $40k again as part of LLC income?
So, you didn't make an election to be taxed as an S Corporation w/the IRS. That mean by default you are filing your business under schedule C And realy you yourself want to give your business a loan - that doesn't work that way. Only when you spend the money you can deduct it. Unless you are taking a business loan from elsewhere.
You really may be want to invest & consult a Tax Professional. It seems you are unaware how the rules apply & also their maybe an advantages to restructing how you file your taxes.
Go to IRS website & read the instructions for Schedule C that may help. And about elections for S Corp.
Good Luck,
Lordis Gawzner, EA
A2T Consulting, Inc.
