What difference does it make when the sole shareholder of a corporation provides $10,000 of additional capital to the corporation as a loan (shareholders loan), rather than in return for additional share capital ...

In both circumstances the owner provides the same amount of capital to the corporation However ...

What difference does it make when the sole shareholder of a corporation provides $10,000 of additional capital

Question:

What difference does it make when the sole shareholder of a provides $10,000 of additional capital to the as a loan (shareholder’s loan), rather than in return for additional share capital?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...