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In your situation, In a small S-corporation, the officer could also be the shareholder. So this same person would have two distinct roles: that of a shareholder and that of an employee. You have a similar situation.
In your case, if you use the money for personal purpose, and do not pay back, it can be draws initially, and later be settled as "salaries" to yourself. This the most proper thing to do.
THis way, you will have your salary properly drawn, and also have Net Operating Loss which will flow on your tax returns and you will be able to claim it.
It would be always desirous to pay your self a "reasonable" salary, or else, the IRS might treat that as your income. So, as explained earlier, the personally used funds should b e treated as salary in the books of the S Corp and that should translate as Net Operating losses (in event of no income) for your s corp.
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I think I understand: So the amounts under "Stockholder Loans" at this point in my books which is depicting the money used for personal use, should by a journal entry be declared as salaries? Then payroll taxes will have to be paid on the salary amount, is that right?