Level 2

New client operated in 2019 as a Schedule C sole proprietor, but set up a single person S-Corp in anticipation of operating as an S-Corp in 2020.   (He filed a zero income 2019 1120-S).   He has been operating under this new S-Corp in 2020.

He used his 2019 Schedule C income figures to qualify for the PPP Loan under the S-Corp EIN.   I'm a bit surprised the bank allowed this, but it is what it is.    Will using the Schedule C income figures for the 2019 look back on forgivable amount be allowed?   

To complicate things, he has only paid himself draws in 2020, although there is still time to do 3-4Q payrolls. 


Labels (1)
0 Cheers