Description

When the corporate coffers dwindle or swell, small corporations often borrow or lend their filthy lucre. The IRS likes to see such loans documented, whether they involve financial institutions, shareholders, directors, friends or relatives. And financial institutions and other lenders often require written resolutions for these loans.

Corporate Loans: Create Promissory Notes and Resolutions explains the tax consequences and legal considerations that will keep you out of trouble with the IRS.

It also provides numerous resolutions and promissory notes for you to approve and document your loan transactions, including:

• Authorization of Institutional Loan at Specific Terms
  
• Authorization of Maximum Institutional Loan on General Terms
  
• Unlimited Authorization of Loans for Business Needs
  
• Authorization of Line of Credit
  
• Authorization of Line of Credit with Cap on Each Transaction
  
• Authorization of Loan Terms Secured by Corporate Property
  
• Approval of Loan to Corporation from Insider
  
• Approval of Corporate Loan to Insider
  
• 12 promissory notes for loans to and from the corporation with various repayment terms

With this comprehensive eGuide, you and your corporation will be able to sigh, "Ahhhh. A loan at last."

Table of Contents

Introduction

• Why Key Corporate Decisions Should Be Recorded
• How Should Corporate Decisions Be Recorded?
• Who Should Use Th ese Forms?
• When to Consult a Professional
• Further Resources

Resolutions for Loans to the Corporation

• When to Use Corporate Loan Resolutions
• Loans to the Corporation by Banks and Other Lending Institutions
• Loans to the Corporation by Shareholders and Other Insiders
• Promissory Notes Overview
• Sample Promissory Note Forms

Resolutions for Loans by the Corporation to Insiders

• Insider Loan Restrictions Under State Law
• Tax Considerations and Consequences of Insider Loans
• Resolution for Board and Shareholder Approval of Corporate Loan to Insider
• Supporting Documentation—Promissory Notes
• Release of Promissory Note

How to Take Action by Written Consent Without a Meeting

• Step 1. Check Bylaws for Your State’s Written Consent Rules
• Step 2. Prepare Written Consent Form
• Step 3. Place Signed Consent Forms in Your Corporate Records Book

Certification, Affidavit, or Acknowledgment of Corporate Decision Making

• Certification of Board or Shareholder Action
• Affidavit of Corporate Decision Making
• Acknowledgment of Corporate Document

Appendix: Print-Only Forms

Forms

Resolutions for Loans to the Corporation

• Authorization of Loan at Specific Terms
• Authorization of Maximum Loan on General Terms
• Unlimited Authorization of Loans for Business Needs
• Authorization of Line of Credit
• Authorization of Line of Credit With Cap on Each Transaction
• Authorization of Loan Terms Secured by Corporate Property
• Resolution Approving Loan to Corporation
• Promissory Note: Installment Payments of Principal and Interest (Amortized Loan)
• Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) Secured by Property
• Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) With Balloon Payment
• Promissory Note: Periodic Payments of Principal and Interest With Lump Sum Principal Payment
• Promissory Note: Lump Sum Payment of Principal and Interest on Specifi ed Date
• Promissory Note: Lump Sum Payment of Principal and Interest on Demand by Noteholder
• Promissory Note: Variable Schedule of Payments of Principal and Interest

Resolutions for Loans by the Corporation to Insiders

• Approval of Corporate Loan to Insider
• Promissory Note: Monthly Installment Payments of Principal and Interest (Amortized Loan)
• Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) Secured by Property
• Promissory Note: Installment Payments of Principal and Interest (Amortized Loan) With Balloon Payment
• Promissory Note: Periodic Payments of Interest With Lump Sum Principal Payment
• Promissory Note: Lump Sum Payment of Principal and Interest on Specifi ed Date
• Promissory Note: Lump Sum Payment of Principal and Interest on Demand by Noteholder
• Promissory Note: Variable Schedule of Payments of Principal and Interest
• Release of Promissory Note

Resolutions to Certify Board and Shareholder Actions

• Written Consent to Action Without a Meeting
• Certification of Board or Shareholder Action
• Affidavit of Corporate Decision Making
• Acknowledgment

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