LLC Formation - Posted by Chris

Posted by JHyre in Ohio on October 19, 2003 at 10:33:19:

To minimize tax consequences to your partner, he should receive an interest in profits only (as opposed to an interest in capital and profits). Otherwise, he will taxed on 1/2 of the money you put in! Making a loan to the LLC would also work, assuming that the entity is otherwise “adequately capitalized” for state law purposes.

John Hyre

LLC Formation - Posted by Chris

Posted by Chris on October 14, 2003 at 17:21:21:

I want to form an LLC where I put in the money (ie to bring a preforeclosure current or buy a house) and my partner is doing most of the work.(including finding the deals) After my money is returned…the profits are split 50/50…I understand that there are complicated tax issues when you “give” some one 50% interest in an LLC that the other party paid for…

What do I do??? I suppose I could make a loan to the LLC??