How to create a “Family Bank” without using Whole Life Insurance?

[Lingo Lin]

I live in New York, and have family in PA, NJ, and FL.

I have a family of about 25 members who would like to pool their savings into one account, and each member would like to have the option of putting their savings into another account for investing as well (real estate, small business, solely for loans).

We are deciding on issues like, if a family member needs some of the savings, that they would be allowed to take it out as a loan only and any profits made, part would be given to member and part would stay in the company.

Any interest from any loans or profit from any investment made would stay inside the company (LLC or Corp) so to not trigger the need to pay taxes until the money is taken out of the company.

The questions here cover Legal, Taxes, and Accounting.

Please note the savings account element is more to have a sort of forced savings within the family and the investing account is a way to pool our funds for worthy investments instead of taking out a bank loan in full or in part.

I’ve heard of Family Banks using Whole Life Insurance policies but we would like to have more direct control of our funds as a family, would also hate for an Insurance company to go under and this way we make our own rules.

Would LLC or Corp be best?

If its an LLC with one account for savings and another for investing be ideal, or are more accounts needed?

Can members or shareholders take out a loan if needed?

If member can take out loans, is there a limit to how much they can take out or how much interest we can legally charge that member?

If interest is made, this is income to the LLC, can tax be pushed to a year when/if this income was taken out of the LLC as a distribution?

If there is any interest made or profit made in LLC, and it stays in the LLC account, doing the LLC still have to pay taxes on that money or will it only be taxed if there is a distribution made to a member that year?

Can anyone suggest any accounting system to handle many personal loans at various rates and investments? that would be great too.

I was looking into banking software, microfinance software, non-bank banking software, etc.

Thank You