Posted by Merez(IA) on August 22, 2005 at 22:16:06:
as per my usual when asked these sorts of questions, I’ld suggest that you consult with your accountant, and if you don’t have one, you really new to find one knowledgable about such things.
That being said, one of the advantages of a llc is that you don’t have to prorate income and deductions based on ownership percentages. I’m sure about that point, but I’m not sure if that is covered in the formation papers or if the owners can adjust it on a year to year basis.
It sounds like the third person (loaning the money) will be a limited member/partner with guaranteed payments and sharing the income, correct? It seems that you could set it up so that they get the guaranted payments or that it could be an actual loan to the company (interest only at a set percentage). Again, more information about all involved is needed to make recommendations, but I hope I’ve provided some things to mention to your accountant.
Oh, the dealer status is covered in part in some of the articles on this site: