Several personal loans

[AndreiA]

What is the name of your state (only U.S. law)? Massachusetts

I'd like to take a few personal loans from several people for terms from 3 to 24 months. After the loan time is over, I'll return the principal plus the agreed interest rate. If we assume that each of 10 people lends me $1000 for 12 months and asks for an interest rate of 1% per month (no compounding), in one year I'm going to wire $1120 to each of them (or mail a check in the same amount).

Is there anything I must know from regulatory point of view (for example, should I/them register these contracts; should I deduct any amount from the wire/check for tax purposes; should I do anything else to make sure the mandatory law requirements are met if there are some...)

Thank you.

 

[adjusterjack]

No legal issues.

No tax deductions.

Whatever your agreement is with your lenders is fine.

 

[Zigner]

What is the purpose of these loans?

 

[AndreiA]

What is the purpose of these loans?

Why is this important?

My reasoning: I'm neither an entrepreneur nor own a company/part of any business. I just need some money for some lawful purposes (whether for personal, consumption, commerce, or anything else - it's up to me to decide, right?), so I ask a few people, "Could you lend me this amount?" And to make them more agreeable, I add, "Not only will I return it in time, but I also want to reward your help with so much interest rate for every month in my possession..."

Even if after borrowing the money, I'll start to use it to make money, would it be really important from legal point of view (i.e. whether the initial loan contracts with those people are valid or not)?

 

[AndreiA]

No legal issues.

No tax deductions.

Whatever your agreement is with your lenders is fine.

thanks; any remark on purpose (see above)?

 

[adjusterjack]

thanks; any remark on purpose (see above)?

Once you are handed the money by your lenders any legal purpose for its use is fine.