1) Don't take out a loan, especially not one where either of you are personally guaranteeing it. Creditors will drive your company into ruin faster than invest

1) Don't take out a loan, especially not one where either of you are personally guaranteeing it. Creditors will drive your company into ruin faster than investors, and you'll be left paying for it. 2) Talk to an accountant to see if there's any extra money you need (e.g. income tax withholding, etc.) to keep things legal.