506B/506C vs Member LLC

[Bryan Carleton]

Hey guys,

I see lots of people asking about 506 regulations but what about 506b or c vs a member LLC? Basically I have some friends that have lent me money in the past, I've done a few flips and paid them back. We structured it like a personal loan back then. However, now I'm attempting to do it the right way and file 506b. But why couldn't I just set up a member LLC, make them members and use the LLC to purchase a flip or a buy and hold?