What are the legal considerations in getting loans from family and friends?
A loan from this source is probably be least as much because of personal relationships as the potential of your business. But that doesn't mean that it should just be a handshake deal. It's almost always best to put the terms in writing by signing a promissory note . With the agreement in writing you won't have two (or more!) widely different memories of who promised when and what. And if you are unable to repay, with a promissory note Aunt Carol is in a far better position to convince tax authorities that her loan to you should be a tax write-off and not a gift.
>>What are some ways of securing capital?
>>How about using my home equity to get funds?
>>What are the legal considerations in getting loans from family and friends?
>>What is a promissory note?
>>What are some legal considerations in loans from financial institutions?
>>What about my spouse’s assets?
>>Are government loans available?
>>What about help for women and minorities?
>>What are the legal considerations in getting contributions from others?
>>Legally, what’s the difference between active investors and passive investors?
>>What if I want to have “passive" co-owners?