My S-corp (sole member) is short on cash but needs to pay a large bill. Fresh cash is expected in the next months. Can I simply transfer money from my personal account to the business account of my S-corp, and then transfer that money back out within a few months?

This would be a kind of loan, but I don't require interest.


1 Answer 1


You can make a capital contribution, not a loan. It's not a taxable event, no interest, and you can take a distribution later when the business has the money to pay you back. So yes, transfer the money. If you use software like Quickbooks, make use of unique accounts for tracking the contribution

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