Finance Questions? Ask a Financial Expert for Answers ASAP
Yes, what you wold be doing in effect is making a loan ... (As a matter of fact, technically, the IRS would say that you should charge at least a low market rate)
What you really should do is draw up a promissory note
The card, then is just a way for that person to acces the fund (would be like a revolving line of credit for them)
_________ [date of making]
___________________ [place of making]
For value received, I, _________, of _________[address], _________[city], _________ County, _________[state], promise to pay _________[to the order of _________ or to _________ or order] at _________[address], _________[city], _________[state], _________[designate time payable, such as: _________ months after date without grace or on _________(date), or if payable on demand, on demand] the sum of $_____, _________[with interest at the rate of _________% annually].
[Signature of maker]
This would suffice
I still don't see you coming into the chat ... I'll move us to the "Questions and Answer" mode ... Sometimes that helps ... (We can still continue a dialogue there, just not in real-time as we can here)
Let me now if you have questions on this
Would I need a license to do this repeatedly with others ?
I would check with your local municipality about any licenses they require, but it WOULD be a best practice to set yourself up as a business and report the income ((and expenses) on a schedule C.
That way you can deduct any legitimate expense of running your business. And if you really start to grow, you might want to consider registering with the state as an LLC, which will protect your personal assets from any business creditors or lawsuits.
Hang on a minute and I'll check Georgia to see if a license is required for the lending itself ... as would probably be considered micro-lending, my guess is that you would have to register with the banking authorities.
Be right back
Thanks, XXXXX XXXXX waiting
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