My mother passed away. As a side business she had a property development business that has not seen any activity in a number of years (I think it might be an S or a C corp).
My brother and I want to close the business down because we don’t want it. The only thing preventing us from closing it down is an interest free loan my mom’s business gave my brother for his house. Someone mentioned to us that if my brother and myself were both in agreement (we now own the business 50/50) that we could have the business write the loan off so we could close the business down without him paying the loan back.
To make things fair, with the rest of the liquid cash in the business we want the business to buy another piece of property of equal value for me and then write that off.
End results: were able to get rid of my brother’s loan, shut the business down and get the rest of the money in the business out of the business without drawing the money as salary.
Is this possible? If so what would be the basic guidelines to do this and what type of lawyer would I need to see?
My brother and I want to close the business down because we don’t want it. The only thing preventing us from closing it down is an interest free loan my mom’s business gave my brother for his house. Someone mentioned to us that if my brother and myself were both in agreement (we now own the business 50/50) that we could have the business write the loan off so we could close the business down without him paying the loan back.
To make things fair, with the rest of the liquid cash in the business we want the business to buy another piece of property of equal value for me and then write that off.
End results: were able to get rid of my brother’s loan, shut the business down and get the rest of the money in the business out of the business without drawing the money as salary.
Is this possible? If so what would be the basic guidelines to do this and what type of lawyer would I need to see?
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