Your ownership interest in the business and interest expense are totally different.
Your beginning interest would be the value of what you contributed to the company. For instance, if you took $10,000 out of your personal savings and opened up a company bank account and deposited the $10,000 into it, then $10,000 would be your beginning basis (interest in the business.)
To that you would add additional contributions you made to the business and income from the business you included in your personal income on your tax return, and you would deduct losses from the business you deducted on your personal tax return.
In it's simplest form, that is how you would calculate your basis.
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