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An LLC Loan Agreement lets a member or outside lender provide money to a limited liability company with clear repayment terms. Use this free, ready-to-edit template to document the loan amount, interest, and repayment schedule. Simply fill in the blanks, download, and get it signed in minutes.
An LLC Loan Agreement is a written contract between a limited liability company and a lender, who may be an outside party or even one of the LLC's own members, spelling out the terms of a loan made to the business. It states the loan amount, interest rate if any, repayment schedule, and what happens if the LLC fails to repay as agreed. This document is especially important when a member loans money to their own company, since it clearly separates that transaction from a capital contribution, keeping the loan and ownership stakes properly recorded for accounting and tax purposes.
Writing a loan agreement from scratch can mean missing details, such as a clear repayment schedule or what happens if the LLC defaults, which can create confusion or tax problems later, especially when the lender is also a member of the company. A ready-made LLC Loan Agreement Template already includes the key sections, such as lender and LLC details, loan amount, interest rate, repayment terms, and default conditions, so you only need to add your specific details. This saves time, keeps the loan properly documented, and helps both the LLC and the lender stay protected if questions come up later.
This template is useful for LLC members who want to loan personal funds to their own business instead of making a capital contribution, outside lenders providing financing to a growing LLC, and family members or friends lending money to a business they are connected to. It is also helpful for accountants and bookkeepers who need a clear, signed record to properly track the loan separately from the owners' equity in the company.
Start by adding the LLC's name and the full name of the lender, noting whether the lender is also a member of the company. Next, state the loan amount and whether interest will be charged, including the rate if it applies. Add a clear repayment schedule, including due dates, payment amounts, and how payments will be made, such as bank transfer or company check. Include what happens if a payment is missed, such as late fees or a grace period, and whether the loan is secured by any business assets. Finally, an authorized representative of the LLC and the lender should review, sign, and date the agreement, and keep a copy with the business's financial records.
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Yes, a member can loan personal funds to the LLC, and documenting it properly with a loan agreement helps keep the transaction separate from capital contributions for accounting and tax purposes.
Not necessarily, though some loans, especially between related parties, may need to include a minimum interest rate to meet tax requirements, so it's worth checking current rules before finalizing the terms.
The agreement usually outlines consequences for missed payments, such as late fees or a grace period, and in more serious cases, the lender may have the right to pursue repayment through legal action
Yes, a loan must be repaid according to the agreed terms and does not change ownership, while a capital contribution is money given in exchange for ownership or equity and is not expected to be repaid.

An Oklahoma LLC Operating Agreement Template helps business owners set clear internal rules for running their LLC in compliance with Oklahoma state guidelines. Use this free, ready-to-edit template to outline ownership, management, and profit sharing. Simply fill in the blanks, download, and get it signed in minutes.

An NC LLC Operating Agreement Template helps business owners set clear internal rules for running their LLC in compliance with North Carolina state guidelines. Use this free, ready-to-edit template to outline ownership, management, and profit sharing. Simply fill in the blanks, download, and get it signed in minutes.

A New Mexico LLC Operating Agreement Template helps business owners set clear internal rules for running their LLC in compliance with New Mexico state guidelines. Use this free, ready-to-edit template to outline ownership, management, and profit sharing. Simply fill in the blanks, download, and get it signed in minutes.

An LLC Ownership Transfer Agreement Template helps document when a member's ownership interest is transferred to another person or entity. Use this free, ready-to-edit template to outline the transfer terms, value, and effective date clearly. Simply fill in the blanks, download, and get it signed in minutes.
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