Promissory note question

[Clonebydesign]

Hasanyone ever taken a loan from friends/ family (my instance for businessstartup) and issued a promissory note to them? Just wondering in the state of Iowa if it can be a simple agreement listingnames, amount given, amount returned and any other terms? Does a lawyer need to draft or be part of itscreation or could you use a notary to help make it an official document?

Thanks for input

 

[Bobber]

I loan some money to my brother for his farming operation. I think I just googled promissory note and found one of the financial/legal websites. I modified it to my needs and have used it for the last 10 years. The thing is I know my brother is good for his money and I never have to worry about him trying to get out of it, so have never had to really enforce anything. We both like the fact it's in writing and have something to fall back on if something were to happen. I don't think the State or Fed care too much as long as you report the interest charges for tax purposes.

 

[BloodyBuddy]

Bad idea, don't ever borrow money from family or friends

 

[erikbj]

Check out legal zoom

 

[Bobber]

Bad idea, don't ever borrow money from family or friends

That's a very good point. Would tend to agree unless you are both have a good head for business.

 

[Clonebydesign]

Thanks for the info guys, were going into this with a good understanding and only using like minded people.

 

[19210]

Thanks for the info guys, were going into this with a good understanding and only using like minded people.

Get everything documented, notarized, and find a legal binding contract. You just never know!