Can you loan money to your own small business by billing yourself and making a payment to it with your personal credit card? How would the accounting work on that? The business isn't actually billing you for a service, so the transaction shouldn't be taxable, and it shouldn't be treated as income either.

Edit: The small business is a single-member LLC incorporated in the USA.

  • Check your (the business's) contract with the credit card company to make sure this isn't fraud. A more straightforward solution would be for you (the individual) to take a cash advance from the credit card and invest it in the business as if it were cash (which of course it is). – The Photon Apr 1 at 0:25
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    What is the organization of the business? Sole proprietor, LLC, or what (and what country you're in could be important here too)? – The Photon Apr 1 at 0:28
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    Tax questions require a country tag. – Chris W. Rea Apr 1 at 1:22
  • Just as a practical matter, there are probably many better - that is, lower interest - ways to borrow money. – jamesqf Apr 1 at 16:22

This typically considered a form of credit card kiting. It is not allowed under the TOS of most (if not all) card processing/merchant account agreements. There can be legal consequences if intent to defraud can be proven, but typically it just results in account closure.

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    This doesn't sound like kiting. It's a one-off transaction, just a convenient way of moving funds. – Pete Becker Apr 1 at 12:57
  • @PeteBecker It's not what those accustomed to check-kiting would think of, but it's generating cash from credit that the user would not have access to in normal usage. Basically it's the first leg of the kite, if they did it again with a separate credit card to pay off the first it would fit more traditional definitions. – Hart CO Apr 1 at 15:10

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