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18
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4
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Alex Kholodenko
  • Specialist
  • Belmont, CA
4
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18
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Crowdfunding investing as LLC or Individual

Alex Kholodenko
  • Specialist
  • Belmont, CA
Posted

Hello,

can someone share their experience and advise on investing as Individual vs LLC for crowdfunding equity and debt deals?

I am finding difficulties with understanding the topic, the way I understand it if you form LLC you can deduct additional business expenses say for traveling for potential property or researching ( internet cost, phone, etc)

Also as far as taxes concerned, isn't it always better if you can acquire a property and secure a deal as an equity and receive a gain upon exit in more than 12 mo. so that capital gain is taxed as long term vs short term gain?

There are a lot of equity and debt deals that pay 10% mo. income but since its treated as short term gain taxes are going to be high. Isn't it better to have equity type of deals that have no monthly distributions but have capital gain distribution upon exit?

What are your thoughts?

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