Tax Law
I'm a foreign founder who has a Delaware C -Corp. I'm the only shareholder. I have used my personal card for paying my corporate expenses like Franchise fees, incorporation fees and trademark filing fees. I don't want my company to pay it back. I mean I don't consider it as a loan. Would that be considered as a reportable transaction under IRS Form 5472?
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Answers
International Tax Attorney and U.S. CPA
Yes. Generally these amounts should be reported on Form 5472. If you are paying company expenses using your personal funds as the sole shareholder, the amounts would be classified as additional paid-in-capital contributions by the sole shareholder, so they wouldn't be recorded on the company balance sheet as a shareholder loan. These payments would fall under the category of "other amounts paid" or "other amounts received" on the Form 5472.
Answered almost 5 years ago