buckeye3399
Junior Member
I am looking to start a new computer sales, service, and rental business in Ohio. I have a private investor giving me enough money to cover my start up costs and my income I will be losing during the 2-3 month time it will take to set up my business. I will not have any income during the time because I will be quitting my job and starting the business 2 hours from where I currently live. My concern is with the taxes involved with the private capital being given to me. Perhaps I should clarify... I said private investor, but in reality, this money is a gift and not expected to be paid back. What would be the best course of action: Start up the business with an EIN and then incorporate the business as an s-corp and have the "investor" make out a check to the business? or Have the investor make the check out to myself and use the money the way I need to in order to get the business up and running and have my income for living? What are my tax obligations in either case? Thanks in advance for your response.