What is the name of your state? Washington State
I am in the process of selling my business. The buyer cannot qualify for financing for the agreed upon price, so I am lending him $65,000. Three questions:
1) Is there a legal limit to the amount of interest I can charge? (We have agreed upon a 14% interest rate for 10 years)
2) Will I have to pay taxes on the loan as income?
3) If so, would there be any tax benefit to setting up a LLC or seperate corp to collect the payments, so as to offset some of the tax liability?
I am in the process of selling my business. The buyer cannot qualify for financing for the agreed upon price, so I am lending him $65,000. Three questions:
1) Is there a legal limit to the amount of interest I can charge? (We have agreed upon a 14% interest rate for 10 years)
2) Will I have to pay taxes on the loan as income?
3) If so, would there be any tax benefit to setting up a LLC or seperate corp to collect the payments, so as to offset some of the tax liability?