Yes, you can loan money to the LLC. From the IRS standpoint, no third party would loan money for free, so this view requires that owners who loan money to an entity they own generate at least some interest (which the IRS then taxes). The IRS has set that the Applicable Federal Rate under IRC Section 1274(d) is the rate that should be used (which varies monthly and is in around the 3% range currently). As to ownership of the company, the loan do not control ownership. This is controlled for an LLC by the amount of percentage interest (or Units, depending on how the documents are set up) owned by a party. As to the rights of a member to expel another member (or other rights in general) this will first be controlled by statute, unless there is an Operating Agreement, which can vary State law on most areas. I would recommend that you get a copy of all corporate documents and have an attorney to review to make sure that you understanding of your ownership and your rights to profits in the LLC match the current documents and structure.
This answer is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This answer is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this answer. This answer does not create an attorney-client relationship between the author (John R. LaBar)/Henry, McCord, Bean, Miller, Gabriel & LaBar, P.L.L.C. and the recipient.
Answered on Aug 16th, 2012 at 10:08 AM