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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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I have a client who wants to start a US corporation (C Corp)

Customer Question

I have a client who wants to start a US corporation (C Corp) with 3 foreign shareholders.
The foreign shareholders will leach own 20% of the company (to avoid filing form 5472)
The company will be reimbursing these shareholders for their business related expenses
My question is, will the corporation be able to deduct these expenses? Is there some other form that needs to be filed?
Submitted: 1 year ago.
Category: Tax
Expert:  ShawnA replied 1 year ago.
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA
As long as the expenses are truly business expenses there is not an issue.
I'll also offer a call to explain in more detail.