I am leading a regional initiative where our goal is engage radically generous women in creating a new economic model.
We are a Delaware registered LLC
We would like to charge a membership fee of $1100 to 1000 women per community (1000 women in SF/Bay Area, 1000 women in LA, etc). $1000 of that membership will be loaned out to ventures and then paid back over 5 years.
- 1000 women contributing $1100 is $1.1m in revenue
- $100K of that $1.1M will be used as working capital for tech and admin costs (assuming this is taxable)
- $1M will be loaned out at low interest to ventures, paid back over a 5 year term and then loaned out again, in perpetuity.
We will collect the $1.1M between August and November 2016 and we will not loan it out until 2017. We would like confirmation that the $1M we are loaning out is not taxable.
As 20% of the $$ is paid back each year we want to ensure that we don't have to pay tax on that $200K/year/over 5 years, only on the interest we are charging.