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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19301
Experience:  B.A.; M.B.A.; J.D.
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We are in the process of forming an LLC and have asked

Customer Question

We are in the process of forming an LLC and have asked individuals to make a significant loan amount ($10,000 plus) to become a member of the LLC. For that loan, once the LLC becomes profitable we will start to pay back the loan with a nominal (.5%) interest. In addition some people want to contribute a smaller amount $2,000, that we plan to treat as a contribution to the LLC and does not include becoming a member nor receiving a payback of the contribution. Is this treatment approach okay?
Submitted: 1 year ago.
Category: Business Law
Expert:  Phillips Esq. replied 1 year ago.

Yes, it is okay. However, you need to make sure that all these things are clearly spelled out in your Operating Agreement. For sample Operating Agreement, click here.

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