How would I report a personal loan to my own small business (llc)? Would it be income?

[MinhT1 · Accepted solution]

If you made a personal loan to your LLC, the amount of the loan is not income for your LLC, nor is it a deduction on your personal return.

If your LLC pays you interest, you will report this interest income on your personal return.

Your LLC will report it as an expense if the loan is used for business.

[guscord]

If a personal loan to my business is not INCOME,  and it is not a deduction on my personal return, May I assume that while it shows up on my bank statement, I do not report it as income when I prepare my taxes?

[Carl]

You don't "loan" money to a single member LLC that you own. It's just a contribution of capital. Basically, taking money out of your left pocket (the personal pocket) and putting it in your right pocket (the business pocket). You already paid tax on that money before you put it in your left pocket. If you then transfer it to your right pocket and record it as income, you'll be taxed on it "again". Certainly, you don't want that.

It just gets reported on the business books as a capital infusion. It gets reported nowhere on your tax return.