My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.


Can I pay for an equity loan through my business?

Guest Writer
Entrepreneur, Business Planner and Angel Investor
min read
Opinions expressed by Entrepreneur contributors are their own.
Be careful with this and work it out with your accountant. Mixing business finances with personal ones can make a mess of both, muddy up your business analysis and your personal finances.

On the other hand, most small business owners have to sign personal guarantees for business loans, and that pulls the house equity into the equation whether we like it or not. My wife and I have signed guarantees dozens of times through the years, essentially using our house equity to enable our business to borrow money. Those loans, however, started and ended as business loans: The money went straight to the business, and the business paid them back. Our house was in the background, in the early days -- there were even liens on the house, but for business loans.

If you already took the money from a personal equity loan into your personal bank account, and you have the business repay the loan or pay the interest, check with your accountant or lawyer because that sounds to me -- and, reader beware here, I'm not a CPA and not an attorney, so this is just a guess, not professional advice -- like the amounts have to be reported to the IRS as the business paying you money, the same as salary.


More from Entrepreneur

Terry's digital marketing expertise can help you with campaign planning, execution and optimization and best practices for content marketing.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur