Legal Question in Business Law in Kentucky

loan for an LLC

A friend wants to invest money into our LLC I need to know what legal forms to fill out and if I can give him a share of my business or do I need to convert to an S-Corp to do this

Asked on 11/30/08, 1:29 pm

1 Answer from Attorneys

Mike Troutman Troutman & Hays, PLLC

Re: loan for an LLC

You can either givee him a share of your business or simply make a loan. If you give him shares then you will need to draw up minutes or a resolution, issue shares or units, record it in the LLC records, and show a change in capital account. There is no reason to convert to a sub-chapter S corp in an LLC.

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Answered on 11/30/08, 10:17 pm

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