by geothermalwelldriller, Window Shopper
- Created: January 28, 2013, 12:53 am
My husband and I are in the process of starting a contracting business, which we are setting up as an LLC. In order to get started we have had to use our own money, which I've noted as our initial contribution in our Operating Agreement. In addition to the cash, the bank also allowed me to put up land shares that I hold as "backing" for a bank loan. To explain - my parents own several farms which are set up as LLCs. I hold 48% of the land shares in one of the 80acre farms currently, the amount increases yearly. It was the value of these shares that the bank considered when approving our loan & line of credit. Given that my parents equally hold the remaining shares, they had to agree to the deal. The terms of the loan actually list some of the equipment we purchased as collateral, not the land. The value of the land far exceeds what we borrowed. Given the fact that we would not have been granted the loan without the land, do I need to note the assessed land value as an initial contribution? Does this need to be documented anywhere?
- Community Home
- Discussion Boards
- Tell Us...
- Discuss Popular Topics
- Developer Resources
- Social Media