Purchase of Business

[goonie]

Jurisdiction

Mississippi

I've been loaned money from a family trust to buy a business. I am in turn, loaning that money to the corporation that my husband and I are buying. The transaction will include real estate/buildings and the business itself (the s-corporation). I am searching for a legal way to more fully secure the money that I am loaning to the corporation. Since I too will be joint owner in the corporation, a deed of trust will not work. Is there another way I can structure this to add the security a deed of trust would provide if I was not also going to be joint owner?

 

[army judge]

The only way to protect money you lend is not to lend the money.

I suggest you discuss your concerns with a trust attorney, a CPA, or a trust officer at a major bank.

 

[adjusterjack]

I am in turn, loaning that money to the corporation that my husband and I are buying.

That question makes no sense and, because is makes no sense, it is clear that you and your husband have no clue about what you are getting into.

I suggest you get yourself a lawyer or you can kiss that money good bye the minute you write the check.

I'm guessing that the people running the business are a heck of a lot smarter at it than you are.

I am searching for a legal way to more fully secure the money that I am loaning to the corporation.

Hire a lawyer.

Since I too will be joint owner in the corporation, a deed of trust will not work.

Where did you get that idea? My guess is you got it from the owners of the business that you want to buy into.

A stockholder/owner is separate from the corporate entity. There is no reason that a loan to the corporation cannot be secured by a deed of trust on the corporate owned real estate.

Without an attorney, you are ripe for a plucking, shearing, fleecing, or whatever metaphor that describes a lamb being led to the slaughter.

 

[army judge]

Without an attorney, you are ripe for a plucking, shearing, fleecing, or whatever metaphor that describes a lamb being led to the slaughter.

For a beautiful, tender, little lamb; slaughter comes to mind.

For the adult version of a lamb, a sheep, shearing must be far more preferable. LOL

Either way, both lose something, one loses EVERYTHING!!!