topic I took a loan to start my business, is that listed as income? in Business & farm

I took a loan to start my business, is that listed as income?

akamink14 — Mon, 09 Mar 2026 04:46:48 GMT

Hi- I am a LLC and i took a loan for 20K to start my business, is this claimed as income on my Schedule C ? thank you

Re: I took a loan to start my business, is that listed as income?

Anonymous_ — Sun, 27 Feb 2022 15:06:53 GMT

@akamink14 wrote:

I am a LLC and i took a loan for 20K to start my business, is this claimed as income on my Schedule C?

No. The loan simply goes on your books as a loan. It is not income and not reported on your income tax return (Schedule C, 1040). The interest paid will be tax deductible, however, if the loan proceeds are used for business purposes.

Re: I took a loan to start my business, is that listed as income?

ColeenD3 — Sun, 27 Feb 2022 15:06:58 GMT

No, this is not income. You did not earn it. You borrowed it and will have to pay it back. Since a Schedule C LLC is a disregarded entity, it is as if you personally took the loan. It would be the same as if you used your own money to get started.

Re: I took a loan to start my business, is that listed as income?

akamink14 — Sun, 27 Feb 2022 15:11:05 GMT

thank you !