I wanted to ask a few things if I may about company Loans to ourselves (from our own companies we own), i'm sure others could benefit from this discussion too.
1. What is the frequency that we can give ourselves a company loan from our own company? How many can we do or is it without limit?
2. If i give myself a distribution over a certain amount it is taxed at 20% - but a company loan which i charge myself 0.5% annually and keep rolling forward every five years sounds appealing, would it work?
3. Also would a company loan to myself work, for me to personally fund a US Whole life policy?
4. Where do we find the structures and documents for this, do we need to get an attorney or tax specialist to help us with the contract? (surely Sovereign global , or Appleby would know all about this and be able to advise?) )
These are questions you really ought to be asking an attorney or qualified tax adviser in the relevant jurisdictions (where the companies are incorporated and, if you take out loans yourself, where you are resident) because loans can have all sorts of consequences if not structured correctly.
As a general rule, loans need to follow the market and should not be used as an alternative to or to avoid taxable events. But each jurisdiction has its own quirks.
These are questions you really ought to be asking an attorney or qualified tax adviser in the relevant jurisdictions (where the companies are incorporated and, if you take out loans yourself, where you are resident) because loans can have all sorts of consequences if not structured correctly.
As a general rule, loans need to follow the market and should not be used as an alternative to or to avoid taxable events. But each jurisdiction has its own quirks.
Thank you Sols
would Soverign Global or Appleby , both be able to advise on loans if I work with them ?
or is this something to outsource to a specialised service ?
They should have in-house counsel that can help with that. But if you plan on getting involved personally (lending to or taking loans from the companies), you might want to seek advice from a local attorney/tax adviser as well in case Appleby or Sovereign don't have coverage there.
