I have an LLC in CA with my brother acting as the primary member of the company. In an effort to get the company started and to get us through some growing pains I loaned the company money, around 50k.
The idea was my brother was going to start taking a salary first when we were able to accommodate and then at some point later when we could afford to pay me as well we would. I already had some income to live off of so I wanted to help the company and my brother.
Here is my question, We are now able to afford to start paying me a salary. Or do we pay back my loan? My brother wants to repay the loan rather ten offer the salary. My position is if I take the salary now and wait until the company is flush with resourses I could get the loan paid at a later date. If I opt to just stat taking the loan repayments then I would be out of getting the salary that we can now afford and the loan at a later date.
It seems my brother wants to use the loan repayment as my salary which means I would really not be getting a salary and just getting my loan repaid.then when the loan is repaid he would put me on salary. Is this fair, how do I explain it to my brother/partner?
Thank you so much for any help