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Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7243
Experience:  30+ yrs. representing small business, real estate, probate
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Id like to ask about business formations, no nothing yet,

Customer Question

hello Id like to ask about business formations
JA: Has anything been filed or reported?
Customer: no nothing yet
JA: Anything else you want the lawyer to know before I connect you?
Customer: the formation would be in Florida, I am looking to make private loans to real estate investors
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: florida
Submitted: 7 months ago.
Category: Business Law
Customer: replied 7 months ago.
I would also like to know what licences I would need, and what is the best structure to use to raise money from family and friends without giving up control on the business
Expert:  Irwin Law replied 7 months ago.

Good morning and thanks for using Just Answer. The business that you have chosen, i.e. making commercial loans is not regulated by either state or federal laws. Nearly all consumer protection legislation is aimed at protecting individual homeowners. You should establish your business as a corporation or LLC. When you make loans to individual investors, they should also be set up as corporations or LLC's. Your loan document should be drafted so that it is clear that the loans are being made to commercial entities. When you borrow money from family members, you can establish them as co-owners of your business by giving them shares or membership interest in the LLC. You must continue to own at least 51% of the entity yourself in order to maintain control. You also have the option of funding your business with loans payable with interest from family members instead of through ownership interests. Then you would retain 100% ownership interest and complete control. I do not believe that a state license is needed for this business.

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