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mcrowe30 mcrowe30
 

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 M¢25  Funded By Mahalo ? |  June 03, 2009 02:48 AM

i am investing in a start-up, should i form an llc and buy into the company using the llc?

investing in the first round of a startup, want to know if there are tax advantages to forming my own llc first and have my shares owned by said lllc
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kalane kalane
 
 June 03, 2009 06:13 AM
I'm not an expert on the subject, so I would recommend that you speak with a certified financial planner or tax lawyer about the subject.

However, there are some helpful links from the IRS that may be able to help you out:
http://www.irs.gov/businesses/small/article/0,,id=98277,00.html
http://www.irs.gov/pub/irs-pdf/p3402.pdf

And another one from Nolo.com:
http://www.nolo.com/article.cfm/objectID/EA88ECFE-C38F-4DF8-BA6551FCBE64DCA0/111/182/245/ART/


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Voted as best: williamwaco
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gladrobot gladrobot
 
June 03, 2009 07:19 AM
you need to ponder the exit of your biz.

exits of under 100k | under 1m | going public

each of these three would dramatically alter your tax event.

look into going offshore. dont pay taxes.

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mcarthur01 mcarthur01
 
June 05, 2009 08:57 PM
agreed with the advice to consult a lawyer on the subject. if you are an investor and not a principle owner it may be better to form your own LLC instead of buying into the startup. it really depends on your goals, if you wish to have influence over the startup you should buy into the startups LLC or simply invest and gain return if successful, create your own or whatever other option a lawyer recommends.

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