My Son bought a pizza business in 2018 as a Sole Proprietor. He incorporated Jan 2019. He then bought a second pizza business in March 2019 with an unsecured business loan (only 50,000) and used business credit cards to re-brand, advertising, etc. He was able to pay off the loan and cards thinking it was the best thing to not have debt but now, in preparing for taxes, he finds this adds to his taxable income and creates a huge tax payment. Just wanted to know, does this sound right? Just wanting to get a second opinion. I'm very familiar with Sold Proprietors but not corp. Thank you.
