Legal Question in Business Law in Ohio
Perfecting Notes
I'm a small business owner (Reg. C Corp - Delaware)with 30 sharholders. I own 80% of the shares. The company is in a poor cash position right now. Therefore, I am personally making loans to the company for cash flow needs of the company. I am also creating notes that are payable to me with interest for the amounts I'm lending to the company. I want to be sure I get priority for repayment when and if the company has adequate revenue to repay me. Question: What or How can I ''perfect'' my notes and be in a position that protects me when I need to collect my loans back to me?
1 Answer from Attorneys
Re: Perfecting Notes
You should prepare promissory notes evidencing the loans. They can be kept with the corporate minute book. Wages are given the first priority to repay and then the loans get repaid once the corporation can do so.
Please feel free to email me with any further questions.
Gregg Manes
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