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Updated over 6 years ago,
How do I figure interest & pay my friend who is loaning to my LLC
I have a new llc and I will be accepting 140k from a friend to put into the llc bank account. I will most likely be paying him back 20k for for investment.
Do I have to tell him make sure he writes let an on the memo line of his check when paying the llc ?
We are buying a home to flip. It will basically be 50/50 ,but I have to know how to separate his money and how to distribute the earnings so that I don’t get stuck with the tax bill on his share.
I know paperwork and records are important for tax Reason and legal liability. So my questions is,how do pay him back a flat amount (20k) instead of showing it as an interest payment ?