Our first private money lenders have come on board!

[Scott Walther]

As we just started out in business last year we have only used hard money. We now have friends and family that want to invest since they see we know what we are doing!  Have not met with a CPA yet but have a few to contact. 

Can anyone tell me how the private lenders are taxed?  Do we have to 1099 them on each project or amount each year?  And is that just added to their short term gains I would assume?

Thanks,

Scott and Amanda