I recently formed a C corp. in which an investor puts an amount agreed upon in a corporate bank account for the months expenses. The question that I have is that I have a future partner (as she just filed personal bankruptcy and is not an officer or partner yet) and in order to help her personal situation the investor is also putting funds to help her personal expenses in the corporate account-the funds are then deposited in her bank account. (This person did in the past spend money developing the product that we are going to be selling so she does have past expenses). The investor says it is okay to do this as it is a loan. (The investor also has no legal document to this loan) but says if we make money she will accept the loan payment but if we do not she will consider it a loss. My question is -this seems an odd way of doing things to me but I do not want to question the investor on this and my accountant says it can be considered a loan. Can this creat e a future problem with my assets? or with the government?