Loaning Money to Your Own LLC
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Can You Loan Money to Your LLC: The Short Answer
Can You Loan Money to Your LLC: The Long Answer
Separate Entity
Equity vs. Debt
Lending Your Money Correctly
Who the creditor is Who the debtor is Exact loan amount Repayment schedule Interest amount Consequences of defaulting How payments should be submitted
Tax Considerations of Lending Money to Your LLC
Can You Recover a Loan From Your LLC in Case of Bankruptcy?
Can You Charge Interest on a Loan to Your LLC?
Pros and Cons of Loaning Money to Your LLC
4 Other Ways of Raising Funds for Your LLC
Term Loan
Business Line of Credit
Equipment Financing
Small Business Grants
The Takeaway
Frequently Asked Questions
About the Author
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