the person wanting to create this business wants no personal liability (so not a SP, Gen. Partnership, or Limited Partnership), minimize taxes (no double taxes), and ability to grow. The assignment wants us to choose 3 entity types and talk about the pros and cons of each (which I’ve already mostly accomplished by focusing on LLC, Corporation, or LLLP). My question comes from a side note in the scenario, it talks about the entrepreneur’s father, who is willing to invest money in the company, but he wants some control over the business HOWEVER wants that money to be considered a loan to be repaid with interest from the company.
Basically…. what kind of an entity would allow this arrangement? As a shareholder in a corporation, the father would receive a voice in the company, but wouldn’t get that money back, only dividends, what he is proposing is a loan agreement. I’m basically confused at how this father would able to get what he wants, a say in business and a repaid loan.
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