Hello all! So I have a family member lending me some money to get started. I'm drawing up a promissory note for it but have a couple of questions. First what are the funds called? I saw some terminology once like "hard money" something like that, just wanted to know if there was a specific term/phrase when it comes to privates funds. Also my partner and I plan on depositing it in a seperate business account, should it be an escrow? Lastly what tax implications if any will it have when the money hits the business account (LLC)? Should it be made in installments? Thanks in advance for any insight.
It is a loan. There are no tax implications when you receive it. Interest you pay is tax deductible and taxable to the lender. It can be deposited in one lump sum.
Thanks John Thedford! What exactly is "hard money lending"?
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