Posts by Tyler Kelly2

Thanks for the input, everyone.
electricviper23—the corporation is giving a loan to a sole proprietorship (totally separate entity). I came across some info saying that in this setup, the sole proprietorship is treated just like an individual, which Jessica Gonzalez30 and Joshua Wright2 apparently confirmed. If there’s no interest at a minimum of 3%, it gets flagged as in-kind income—regardless of whether the person is an employee or not...

From what I can gather, I need to issue an invoice without sales tax to account for the interest. Are there any specific legal deadlines here—like monthly, or maybe within 15 days after the loan is repaid—that I have to hit when issuing the interest invoice?

From what I gather—correct me if I’m wrong—companies can pull off interest-free loans to other corporations, but if you're lending to an individual, the IRS is going to want their cut in interest.
As a director, I’m looking to lend some cash to a small business owner I work with just to help them stay liquid. I can't seem to find a straight answer to a simple question: since this guy is a sole proprietor, does the law treat him like another company where I can skip the interest, or is he treated like a private citizen where I'm forced to charge interest?