When writing a Heter Iska to issue a loan to an LLC – 1. Is it sufficient for 1 member to sign for the company? 2. Do you use plural or singular for the LLC? 3. To whom does the dollar for ‘sechar tircha” go?
Thank you.
Answer:
1. It is sufficient for one member to sign, provided that he has the appropriate power of attorney to sign on behalf of the company.
2. The singular form is used.
3. The dollar of sechar tircha should go to the company itself.
Although some poskim maintain that there are no issues of ribbis vis-a-vis a LLC, we are stringent to require a heiter iska (for a Jewish-owned company) for loans. Because the other party of the deal is the company, the heter iska will apply to the company itself, which is the “representative” of its owners.
