Your understanding looks correct, but keep in mind that special care should be taken for loans from S-Corp shareholders. There has to be evidence that it is an actual loan because the IRS can come and recharacterize the loan as a shareholder distribution. If there are more than one shareholder the ownership percentages would come into play. Then the S-Corp could end up being reclassified as a C-Corp because the S-election could be blown. This could result serious tax consequences.
@inspiredcabinetr
