Recommended entity for HOLDING notes? - Posted by Drew
Posted by Drew on June 08, 2000 at 12:35:04:
I approached a friend about loaning me money to buy notes and he countered with the idea of forming a LLC or Corp. together (each contributing 50% of the intial capital) and I will run the show. My accountant is in Hawaii so I wanted to bounce this off you smart folks.
What is the recommended entity (LLC or Corp.) for HOLDING (not brokering) notes?
I’d rather not take a salary and assume that note income is considered passive (like rental income), so an LLC would be the best bet. Am I right here?
Thanks for any insight you can offer!