Get money out of C corporation

Loans to business owner from C corporation

The C corporation can lend the business owner some money. However, loans from C corporations to business owners must be dealt with care. If the business owner is taking out a loan from the C corporation instead of getting paid salary, the IRS can recategorize the loan payments as dividends to the business owner.

Investing in another business

Alternatively, your company can lend money to your investment LLC or limited partnership. The company is in effect making an investment like any other form of investment and it provides the cash for the investment. The C corporation is in effect a money partner of your other business(es).

Money partner

A business owner's C corporation can become a money partner by providing cash for an investment. A business owner needs to first form an LLC in which both the business owner and the C corporation are members. The C corporation then provides the money and the business owner provides the management of the LLC.

How to get money out of C corporation