What is the best structure for a simple investment into a small business?

by a searcher from Pennsylvania State University

3 years ago

Hi all, seeking to make a small, passive investment into a friend's small business. I want to structure it as simply and fairly as possible.

Any tips? I have an LLC set up that I could invest through. Her company is an LLC as well, so she could add me a member.

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searcher from University of Wisconsin - Eau Claire

The easiest way to use an LLC. You can choose to be taxed as a partnership first, Then a C corp if your project is getting to success in a big way. This way you can take advantage of the Qualified Small Business Stocks. Book a time with me at www.hzcpas.com if you want to talk more. thank you.

3 years ago | like reply | 0 likes

investor from University of Nebraska - Lincoln

Talk to a lawyer for 15 minutes - they’ll outline the best structure for you. I’ve seen personal and LLC approach for something like this depending on structure, goals, size, your tax situation, etc.

3 years ago | like reply | 0 likes

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