Timber Investment ( HELP )

[Muniz]

I am currently working on a business plan for a timber company. While start up costs to buy a track of land is relatively minimal, I do not have the funds. So I have thought about starting my company as an investment company. I envision starting the company by putting a down payment on a track of land and having investors make monthly payments to pay for the bank note.
My main question though is about taxes. To avoid having to pay taxes on the monthly payments received would it be best to issue stock for these payments? And thats how the company could avoid these payments being seen by the IRS as income?

Thank you to any contributors. I am learning much and growing every day. And greatly appreciate the advice of those more experienced than I.

Luis

[Freelancier]

You need an accountant and a lawyer.

You also need to talk with some investors to see if your plan would even fly with them. My guess is "no". See, if I'm an investor, I would give you a lump sum and expect you to pay me a regular dividend/profit. I would not pay you monthly.

Also, any money received from an investor, you'd issue them either a portion of the company as shares or have paperwork explaining the terms on the promissory note. Neither would be considered "income" subject to taxation.

So back to my first sentence.

[Fulcrum]

Before talking to investors or even lawyers and accountants you need know exactly how much land you need in order to generate income over the long term. You also need to consider sustainable harvesting as clear cutting is frowned upon. You will also need to study lumber prices and returns as you cannot get furniture grade lumber from every log.

A couple of resources to help you research this further:
National Hardwood Lumber Association (http://www.nhla.com)
Woodworking Information at WOODWEB (http://www.woodweb.com)