schedule C incorporating

A schedule C client is incorporating. Has around 2 million in inventory. Was going to record the inventory as contributed capital; client wants to record it as a loan but then there will be interest problems. Any suggestions please

I would do it your way. What's the guy's capital account like?

C Corp or S Corp? Sole owner or other owners involved?

That might really affect the pros and cons.

s corp sole owner thanks

Additional paid in capital for sure.

viewtopic.php?f=8&t=19373

Furthermore, wouldn't a note indicate a sale of the inventory to the S Corp (as opposed to a contribution)? Which is probably not optimal.

Besides that, 351 requires all equity unless you're in that one circuit that permits debt on inc'ing.

thank you all very much