Investing in my son’s company
My husband has an inherited IRA from his mother. My son is looking to purchase a small business. Our annual income is currently about 110,000. One of us is on social security and we both still work. What is the best way for us to be a part of our son’s new business which he is purchasing? Where do you get a tax lawyer and set up shares? How do we get the best tax advantage?
Terry Says
First of all, don’t plan to use your IRA money to help your son! That money must be held by an independent custodian, and cannot be used for this kind of transaction.
I suggest you direct your son to the Small Business Administration for a regular business loan, which will be HIS responsibility. Let him set up his own company.
At this stage of your life, you should invest only your pride, which you can afford! Any other money you allot to him should be a gift, with no expectation of any return.
