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by Anonymous on June 27th, 2009

Anonymous

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If a CEO/full time employee lends the corp money from himself, does this need to be setup as an interest bearing Notes Payable to the CEO or can it remain as just a note payable with no interest?

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Answers. 2 helpful answers below.

  • by Sherri on November 3rd, 2009

    Sherri

    It is my understanding that interest must be charged whether or not it's in the 'note'. If audited, the IRS will more than likely impute interest and add it to income even if NOT collected!

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  • by Tuth on October 21st, 2009

    Tuth

    If a CEO lends money to the company you need to set up a Notes payable to that CEO, the CEO can or may not require interest it depends on the agreement.

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