Updated almost 5 years ago on .
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Sweat for Equity Advice needed
What are the top things to be aware of when getting equity in a deal in exchange for a little sweat?
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@Sheryl Sitman
Need to be mindful of proper partnership structure. Sweat equity could create income tax liability upon receipt of capital interests. You and tax advisors need to review partnership agreement regarding profit vs capital interests, allocations, and capital accounts.