Capital Investment?

If I wanted to start up my LLC with 25k from my personal funds how would I structure such a loan and what is a reasonable rate 5% 10%?

How would the LLC repay me? Monthly, quarterly, yearly?

Any Info would be great.

Thanks

Phil

first, fund the LLC. $100 will do. Call it “members contribution.”

for the rest:

what loan terms would the LLC expect to get from a “friendly” 3rd party? that’s reasonable.

structure the loan accordingly. be sure to properly execute a promissory note and make payments. Remember, it’s a business.

But tell me what happens in the event that the LLC needs to use that money for other investments and cannot afford to pay me for a short period of time since I have av intrest in both me and the LLC would that that look as though the LLC defaulted even if I did not report the problem of non payment from the LLC? Do you see the delima? I’m only thinking of things that may happen and do not antisipate a problem but I do believe that knowing the awnser before the question arises is a good thing.

Phil

Phil,

These things are why you need your own CPA on your team now. If you are in Dallas, TX, I am sure you can hire Mark at his hourly rate

True. Sorry Mark.

then you set friendly terms. or you re-negotiate the note. or or or.

don’t make it more complicated than it is.