My wife and I are co-managers of our newly founded LLC. We are in the process of acquiring properties and will need to loan the LLC funds for purchases and expenses. When preparing the promissary notes (lump sum repayment), I have the LLC set up as Borrower and myself as the Lender. I will be signing for the LLC as the Borrower. Is this permissible? Also, do I need to have a 3rd party witness signature on the promissory note?
Thanks.
Partnership contributions would be easier IMO.
You’re wanting to make promissory notes for when you inject capital into your business??? As previously mentioned, partnership contributions or owners contributions is a much easier transaction to keep track of.
because in the event things go really really bad, loans can be repaid, but capital contributions are gone forever.
make enough capital contributions to properly “fund” the company, then make loans if the company needs more cash.