Business Loan

[abys32]

What is the name of your state (only U.S. law)? Florida

If a corporate shareholder and executive of the company deposits a check into the company bank account and writes "loan," in the memo, is that legally adequate to substantiate that a loan has been made and accepted or must there be a written and signed document by the shareholders?

 

[Antigone*]

What is the name of your state (only U.S. law)? Florida

If a corporate shareholder and executive of the company deposits a check into the company bank account and writes "loan," in the memo, is that legally adequate to substantiate that a loan has been made and accepted or must there be a written and signed document by the shareholders?

Shareholders do not normally sign loan agreements.

 

[tranquility]

No, that is not enough to establish a loan. But, neither is your "must".

 

[abys32]

follow up

I guess a more I need a more open ended question about what establishes a loan to a corporation?

Another follow up question: What is the appropriate term for the previously mentioned check (e.g., donation, payment, investment etc...)?

 

[Antigone*]

I guess a more I need a more open ended question about what establishes a loan to a corporation?

Another follow up question: What is the appropriate term for the previously mentioned check (e.g., donation, payment, investment etc...)?

It depends on the structure of the company; but generally speaking I would say Owners' Equity.