Giving a loan for a business

W

WhiteOut56

I'm loaning $ to this guy for a business, it's a simple ebay business. (it's more or less a loan of a favor)

What I'm concerned about is there is anything I have to worry about w/ regards to liability? Like if he does something illegal can a suit be brought upon me.

I know I should ask a lawyer, and probably will, but just wondering ETs input.


Thanks
 
Quote from Hydroblunt:

Does he have other sources of income? Because that's the only way you will get paid.
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I'm not concerned about that.... its not a loan based upon I think it's a good idea. It's a favor

What I'm addressing is say the business does something where it finds itself in a lawsuit. Can the person who gave the loan (me) be liable?
 
Quote from WhiteOut56:

I'm not concerned about that.... its not a loan based upon I think it's a good idea. It's a favor

What I'm addressing is say the business does something where it finds itself in a lawsuit. Can the person who gave the loan (me) be liable?
More...

Make sure you have a legal loan document showing it is a loan with a scheduled payment plan and not an investment. Make sure it is an 'arms-length' transaction where you have no part of the business as manager or as an investor which could be considered a partnership, etc...
 
Of course not. If so every gun bought on a credit card that is used in crime would make the credit card company liable. Think what you are asking.
 
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