Further to that loan/bankruptcy thing - I've learned the hard way - if you truly see something as a loan rather than an investment or potential gift, never lend to a corporation or limited liability entity, unless you get a guarantee on the personal level. It's been vexing to see a loan go uncollectible because the corporation was closed down, knowing full well that the former shareholder of the corporaton actually has money (that he may have taken out as salary), so essentially has your money but doesn't have to give it to you since the debt died when the corporation dissolved.