I'm working on getting funding for my search and one of the big questions we have is with regards to how the funding works and the best way to do it for tax purposes. If I sell units in my LLC, will that income be taxed immediately, or will it only be taxed as the amount of salary that I take? Is it better to be fully funded upfront for the search or to be funded, say, every six months? Furthermore, is the seed money an investment or an expense for the investor? Is there a way to make it an expense, like setting up as employees if it's a single investor?
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
100 views
1 comment
Sign in to see all replies.
Create an account.