Posted by Drew on June 09, 2000 at 18:50:01:
Hi Carol,
Thanks for your reply. I also posted this on Bill Bronchick’s site and he replied that buying and holding notes is considered an “investment” not a “business” so profits would not be hit with SE tax.
Good answer!
-Drew
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!
-Drew
Re: Recommended entity for HOLDING notes? - Posted by Carol
Posted by Carol on June 09, 2000 at 06:26:44:
I look forward to other responses, but it seems to me that this was Bronchick’s advice to me on the subject.
Carol