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Article Summary: Intercompany loans are transfers of funds between related entities, offering speed and flexibility. To avoid severe tax and legal risks, they must be documented with the same formality as an external bank loan. You should not make them interest-free, as the IRS will impute interest (taxing the lender on income it didn't receive). Always charge at least the Applicable Federal Rate (AFR) and document the loan with a formal Promissory Note and Board Resolutions 

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