Winnipeg, Manitoba · Member since 2016 · 20 posts · 1 vote
Hi Friends,
I just set up a C Corp just for a dollar. Then I, myself, loan to my corporation some money (let say $A.00) so that the company can pay some operation expenses and can buy properties when the opportunities come.
Do I need to draft a loan agreement between myself and my corporation for the amount of money I loan to my corporation?
Is the amount of $A.00 the Paid-in Capital in the annual report form filed to Secretary of State? If not, what is the "Paid-in Capital" in the annual report form?
Debt is not paid in capital. What you will want to do is treat it as paid in capital. You can lend funds to your corporation; however, you do need to write up a loan for any amounts invested.