> Probably because then you can fairly easily create a tax evasion scheme where you never pay yourself a salary and just keep borrowing money at zero interest and payment due long about five years after the sun explodes...
It's legal here in the US, but there are rules around minimum interest charges. I dealt with this during a partner buyout - the payment schedule HAD to have interest involved or else it was considered a fishy loan.
It's legal here in the US, but there are rules around minimum interest charges. I dealt with this during a partner buyout - the payment schedule HAD to have interest involved or else it was considered a fishy loan.
https://www.law.cornell.edu/uscode/text/26/7872