Originally Posted by
Justloadit
The manner in which you place your question, sounds like selling of shares, which I think is not what you are referring to.
The way I understand this, A member contributed cash to the business so that it could start up, as the company never had money to start. It has made a success of the use of this money to produce a sustainable entity. It now has liquid capital to repay the original contribution of the member. In my books this is a loan, the fact that no interest was paid/levied does not detract from this. So effectively as far as the member is personally concerned, he is getting his money back. The non levied interest is another mater, and tax experts will be able to make this clear.
The company to have been able to recover the initial "loaned" amount, means it has made a profit, and so would have paid tax on this profit, before paying out the loan account.
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