Document a Loan for Your LLC (2022) - YouTube

what's up guys Taylor Mathis here the KEYTLaw girl, marketing director, and legal

assistant at KEYT Law. Today we're going to go over how to document a loan for

your LLC so keep watching! And don't forget to like this video and comment if

you found it helpful and of course be sure to subscribe to our channel to

check out more of our videos we upload new content every week to assist with

your legal needs. So you want to loan money to your Arizona limited liability

company but how do you document the loan so it will stand up to a challenge by

the IRS another member of the LLC or a creditor?

The lender must take care prepare and have the appropriate parties sign the

following documents. First a promissory note. The promissory note must be signed

by at least one member of a member managed LLC or one manager of a manager

managed LLC. The promissory note should state the principal amount of the loan,

the lender to whom payments will be made, where payments should be sent, the date

of the loan, no interest will accrue or interest will accrue at the specific

rat,e there were payment terms and maturity date by which the loan must be

repaid in full. Next document resolutions or action by unanimous consent

this is a document that shows that the members of the LLC authorized the

company to borrow the money on the terms set forth in the promissory note and

that specifies which member or manager has the authority to sign the promissory

note on behalf of the LLC. The next option is the simplest and easiest way

for members to approve the loan if all members of the LLC agree to the loan and

its terms they sign an action by unanimous consent that contains the

resolutions adopted by the members but if any member refuses to sign the action

of unanimous consent the members must call a special meeting

of the members to consider and vote on the loan and give appropriate notice of the

date and time of the special meeting must be held the loan discussed

and a motion must be made and seconded that the members authorize the company

to borrow X amount of money from whoever the lender is on the following terms. And

that the name of the member or manager that is authorized to sign the

promissory note and related documents on behalf of the company if the lender

insists that the promissory note be secured by the LLC's personal property

and/or real property then this is done by having the LLC's authorized signer

sign a security agreement for personal property and/or a deed of trust for real

property. If the lender gets a security agreement the lender must also file a

UCC one financing statement with the Arizona Secretary of State if the lender

gets a deed of trust the original document must be recorded with the

County Recorder of the county in which the property is located. In addition to

the above documents the lender must write a check payable to the LLC or wire

the funds to the LLC's bank account and the LLC must indicate in its books that

it borrowed the funds from a lender. So that is how you go about documenting a

loan for your LLC and all the links to the forms talked about in this video are

in the video description below. So thanks for checking out KEYT Law guys throw us

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