What is a mellemregningskonto (owner's current account)?

In short

A mellemregningskonto is an account tracking running balances between the business and, say, its owner — out-of-pocket expenses and loans. It shows who owes whom.

In practice

Pay for something privately on the company's behalf, and the amount stands as the company's debt to you — repayable tax-free. Owe the company money instead, and it is an illegal shareholder loan, which gets taxed. Sole proprietors typically use the account for private drawings.

Go deeper: Shareholder loans: can you borrow money from your own ApS?

Related terms

• Kapitalejerlån (shareholder loan)
• Udlæg (out-of-pocket expense)
• Egenkapital (equity)
• See every term in the dictionary

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