Legal Question in Business Law in Colorado

Re: s corporation investors

Morning,

Your question subject is about "investors." If this is an investment, you need to be careful on exactly how this trust is going to be repaid if it relates in any way to an issuance of stock.

As a general rule, an S corporation can borrow money from any person or entity. A retirement trust cannot, however, be a shareholder of a S corporation. I would talk to an attorney about your investment plans to make sure they are appropriate and protect the corporation's interest.