📱 Best Platforms
LegalZoom (LLC setup), QuickBooks
📖 The Hustle
If you already own a profitable side business, loan your personal cash to your LLC at a market-rate interest (8-12%). The business deducts the interest as an expense, and you report it as personal interest income. The LLC makes scheduled monthly payments back to you from its revenue. This strategy works best with established side hustles that have consistent cash flow — consulting, e-commerce, or service businesses. Your money earns more than a bank account would pay, secured by your own business.
🚀 First Step
Draft a simple promissory note between you and your LLC with interest rate, term, and payment schedule, then transfer the funds.
🔑 Keys to Success
- Set the interest rate at the IRS Applicable Federal Rate (AFR) or slightly above to keep the transaction clean for tax purposes
- Document everything — a signed promissory note, bank transfer records, and the LLC resolution authorizing the loan
- Ensure your business generates enough profit to cover payments so you are not draining operating capital to pay yourself back
🛠 Tools & Resources: LegalZoom, QuickBooks, Nolo promissory note templates, Gusto for payroll, Stripe Atlas