Interactive template
Free legal form · Promissory Note
Promissory Note.
Customize a Promissory Note: principal, interest, repayment schedule, default terms.
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This is a template, not legal advice. Templates work for many situations. Complex matters or jurisdiction-specific issues warrant attorney review.
Find an attorney →When to use
Right for these situations.
When to use
Friend or family member is lendingBoth want clear terms.
When to use
Founder is lending to the companyMember loan.
When to use
A vendor is financing a purchaseDocumentation required.
When to use
Bridge debt before next equity roundPending fundraise.
Common mistakes
What to avoid.
Mistake
No written documentationVerbal loans hard to enforce.
Mistake
Below AFR interestIRS may impute interest for related-party loans.
Mistake
No maturity dateIndefinite obligations may not be enforceable.
Mistake
Vague default termsDefine events of default.
FAQ
Common questions.
What is AFR?
Applicable Federal Rate. Minimum rate for related-party loans.
Notarize?
Generally not required.
Promissory vs convertible note?
Promissory: pure debt. Convertible: converts to equity.
Tax treatment?
Interest expense deductible to borrower; income taxable to lender.
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At a glance
- What is it
- Promissory note template (free) is a regulated business process governed by federal or state agencies. File.Business handles the paperwork, filings, and tracking for you.
- Why it matters
- Doing this correctly the first time avoids penalties, late fees, and personal liability exposure for owners.
- Who needs it
- Any US business that has triggered the relevant requirement - usually based on entity type, state, or business activity.
- When it is due
- Deadlines vary by agency and state. We track your specific dates and remind you ahead of any filing window.
- How it works
- Tell us what you need, review the prepared filing, and we submit through the agency's official channel.
- What it costs
- Pricing is shown on this page with state and federal fees disclosed separately from our service fee.
- Risks of skipping
- Penalties, administrative dissolution, loss of liability shield, blocked transactions, or audit triggers depending on the filing.
- Alternatives
- File directly with the agency yourself, hire a law firm, or use a competing service. File.Business is the fastest premium option.