LLC - Loan at

Go Back   DV Info Net > And Now, For Something Completely Different... > Taking Care of Business

Taking Care of Business
The pen and paper aspects of DV -- put it in writing!

Thread Tools Search this Thread
Old January 25th, 2008, 03:16 PM   #1
Regular Crew
Join Date: Feb 2004
Location: bloomington, il
Posts: 40
LLC - Loan


I have an LLC with three of my friends, and I'm thinking of taking out a loan to purchase some equipment. I understand that being part of an LLC enables one to deduct the loan costs (interest and such) on one's own tax forms. What I'm wondering is if I go ahead and do this, do I need to apply for the loan and include the name of the business? I know I'd be personally liable should I default, and that's fine, but I would like to be able to deduct this thing from my taxes.

Any advice would be much appreciated. Thanks.
Matt McLain is offline   Reply With Quote
Old January 25th, 2008, 03:59 PM   #2
Inner Circle
Join Date: Jan 2003
Location: Chicago, IL
Posts: 6,609
let me suggest 2 things. Check with a lawyer and an accountant. They are the professionals in that arena an would have all the RIGHT answers.
Don Bloom is offline   Reply With Quote
Old January 25th, 2008, 04:06 PM   #3
Major Player
Join Date: Apr 2006
Location: Cedar Rapids, IA
Posts: 561
Yes, check with a professional. At first glance, though: the interest that your LLC pays for its loan will be an expense that can be deducted from the LLC's income, not your personal income. If, overall, the LLC posts a loss at the end of the year, that loss may be transferred to the members/owners, according to the distribution system that all the owners have agreed on.

The basic rule is that the LLC and its owners are treated separately. An expense for the company is not automatically a tax deductable expense for you.

- Martin
Martin Pauly
Martin Pauly is offline   Reply With Quote
Old January 25th, 2008, 04:25 PM   #4
DVi Contributor
Join Date: Mar 2006
Location: Austin Texas
Posts: 374
each member will receive a Schedule K ? ( I believe thats the one ) that will need to be attached and rolled into each members personal taxes. You really need a tax person to prepare the paperwork for the LLC even if you do your own personal taxes. IMO
Craig Chartier is offline   Reply

DV Info Net refers all where-to-buy and where-to-rent questions exclusively to these trusted full line dealers and rental houses...

Professional Video
(800) 833-4801
Portland, OR

Omega Broadcast
(512) 251-7778
Austin, TX

(973) 335-4460
Mountain Lakes, NJ

Abel Cine Tech
(888) 700-4416
N.Y. NY & L.A. CA

(800) 238-8480
Glendale, CA

Precision Camera
(800) 677-1023
Austin, TX

DV Info Net also encourages you to support local businesses and buy from an authorized dealer in your neighborhood.
  You are here: DV Info Net > And Now, For Something Completely Different... > Taking Care of Business

Thread Tools Search this Thread
Search this Thread:

Advanced Search



All times are GMT -6. The time now is 10:48 PM.

DV Info Net -- Real Names, Real People, Real Info!
1998-2015 The Digital Video Information Network