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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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