Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Cattle Boards
Cattle Sales
Making money in cattle!
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="Warren Allison" data-source="post: 1786647" data-attributes="member: 40587"><p>I understand what you are saying. You are not legally responsible to pay back a loan a company you own stock in secured. You may feel a personal. moral obligation to do so, you are not legally bound to do so, and creditors can not go after your personal assets. But say you did have a company that borrowed money and because of a variety of things, the company did not have the funds on hand to pay the loan off at maturity. If you wanted to pay it, and keep the company alive and viable, then what you could do is <em>loan </em>the company the money to pay the loan. You wouldn't want to run to the bank and get your money out, to pay that company's loan. If and when the company makes a profit use that money first to re-pay you plus interest. Or, you could just let it pay you interest only, and keep renewing the loan. If you set the interest rate at say 8%, you'd be as well off or even better than having it in a CD or any other kind of liquid account.</p><p></p><p>I don't know anyone that borrows money via a company they own, with the intention on defaulting on it. These are just legal business and tax strategies that everyone uses, and has existed as long as corporations have in the US, and it is just good business sense to make use of it. I mean, you <em>could </em>take out a personal loan to buy a house, if you wanted to. instead of a mortgage. Of course an honest loan officer would try to explain to you the foolishness of doing so. Interest on a personal loan is higher and is not tax deductible like a mortgage is.</p><p>I have sold someone a cow or two or maybe a bull, for cash money, but anytime someone has bought a herd, or a group, they have always paid with a certified or cashier's check from their company or LLC. I don't think I have done a very good job explaining this. Too many people are not understanding (and of course, there is the handful that will argue with me if I post today is ground hog's day, but most people ignore them like I do.. [USER=42313]@Mountaintown Creek Ranch[/USER] , [USER=38220]@GoWyo[/USER] , [USER=32659]@Lucky[/USER] ...help? <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile :)" loading="lazy" data-shortname=":)" /></p></blockquote><p></p>
[QUOTE="Warren Allison, post: 1786647, member: 40587"] I understand what you are saying. You are not legally responsible to pay back a loan a company you own stock in secured. You may feel a personal. moral obligation to do so, you are not legally bound to do so, and creditors can not go after your personal assets. But say you did have a company that borrowed money and because of a variety of things, the company did not have the funds on hand to pay the loan off at maturity. If you wanted to pay it, and keep the company alive and viable, then what you could do is [I]loan [/I]the company the money to pay the loan. You wouldn't want to run to the bank and get your money out, to pay that company's loan. If and when the company makes a profit use that money first to re-pay you plus interest. Or, you could just let it pay you interest only, and keep renewing the loan. If you set the interest rate at say 8%, you'd be as well off or even better than having it in a CD or any other kind of liquid account. I don't know anyone that borrows money via a company they own, with the intention on defaulting on it. These are just legal business and tax strategies that everyone uses, and has existed as long as corporations have in the US, and it is just good business sense to make use of it. I mean, you [I]could [/I]take out a personal loan to buy a house, if you wanted to. instead of a mortgage. Of course an honest loan officer would try to explain to you the foolishness of doing so. Interest on a personal loan is higher and is not tax deductible like a mortgage is. I have sold someone a cow or two or maybe a bull, for cash money, but anytime someone has bought a herd, or a group, they have always paid with a certified or cashier's check from their company or LLC. I don't think I have done a very good job explaining this. Too many people are not understanding (and of course, there is the handful that will argue with me if I post today is ground hog's day, but most people ignore them like I do.. [USER=42313]@Mountaintown Creek Ranch[/USER] , [USER=38220]@GoWyo[/USER] , [USER=32659]@Lucky[/USER] ...help? :) [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Cattle Boards
Cattle Sales
Making money in cattle!
Top