Howdy!
I am curious as to what the legalities are for private money lending. I have an opportunity to invest a small amount of money. $500, and work my way up in value if I so choose in the future. I understand the inherent risks associated with private/personal lending but the individual who I am having these discussions I have been working with, daily, for over 5 years and spend several evenings with every month including play dates with the kids.
Questions
What are the legalities of doing a private loan?
Am I required to file any paperwork?
File an LLC and get legal representation and insurance?
Am I required to have a written and signed contract?
Thanks!