• October 2018
    M T W T F S S
    « Sep    
    1234567
    891011121314
    15161718192021
    22232425262728
    293031  

We want to lend money to our new c-corp to cover startup costs. What type of loan document should we use to keep it simple yet effective?

Personal money going into a business can be treated as equity or as a loan that must be paid back by the business.

If you treat your personal funds as a loan, you should document the loan in a promissory note. A promissory note is a legal document that authorizes the business to borrow from the individual. It’s basically a glorified “IOU.” Make sure to separate your personal account from that of the corporation to avoid any messy accounting / IRS / SEC problems, and to maintain your personal liability protection.

If you need help drafting a contract detailing your loan then try LawTrades. Our legal platform consists of many top-notch startup attorneys who are experienced with this type of stuff. We offer free consultations and price quotes!

Legal is hard. Let’s tackle it together.

Speak to one of our Legal Pros and discover how we can help.

Let's Talk

Comment

There is no comment on this post. Be the first one.

Leave a comment

[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]