Investing in a private fund

[Ayne C.]

I have a tax question I'm hoping someone will entertain.. I'm going to invest in a 506b fund and I'm wondering.

Is an income generating asset taxed more favorably when held inside an LLC?

-Yes

-No

-Depends

Thank you in advance.

[Christopher Smith]

No, the tax consequences are the same assuming you have a single member LLC, it's seen as totally transparent for Federal income tax purposes.