Investing

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I own a S-Corporation in the state of Florida. I was wondering if I am able to use business funds to invest in another business?
My husband and daughter want to start a restaurant. I was wondering if instead of getting a bank loan can I give them the money to put down on the restaurant from my s-corp that has been operating since 2006?
My daughter holds no shares in my current corporation, but she is listed as the secretary on the articles of incorporation and in turn i will be listed as a secretary on her corp. once it is open, but I will not posses any shares as well.
If anyone has any information on this, I would truely appreciate the responce.

[Business Attorney]

If your corporation is an S corp, it means you have already paid taxes on the corporation's earnings. So the short answer is that you should be free to do whatever you want with the funds that are left in the corporation.

However if you GIVE your daughter the money (not a loan), then you need to check out the gift tax laws. There are annual exclusions and a life time credit (which ties into the Federal estate tax).

You should talk to an accountant or attorney to make sure you cover all your bases.

[Evan]

If you're wishing to have your S-Corp "invest" in another business, you certainly could do so but should be receiving either shares of stock or a note.

There are a lot of possible considerations, and I agree that you should talk to an accountant or attorney to make sure all bases are covered.