Third-party loans should be taken out in the Corporation's name and not in your name. If you personally borrow and then contribute the loan funds to the company's capital, you can be forced to withdraw taxable dividends later to pay the interest and principal on the personal loan.
It is better to make a loan to the company instead. This debt would be owed to you personally as a shareholder rather than to a thirty-party lender. Then you would receive taxable interest payments on the loan without double taxation because your corporation receives an offsetting interest expense deduction. You would also collect tax-free principal payments on the loan.
