Help!!
I am thinking about going into REI and doing it with 5 other investors where I would do most of the leg work and they would be my funding source, should I pay them through a C corp or LLC and how do I do this and avoid high taxes. Please respond
If you have the people ID'd; then I'd suggest you set-up the LLC so the 5 people each own 20% (assuming equal investment) and any profit is shared in according to your plan - say the group gets 50% of the profit - so each individual gets 20% (their share of the llc) of the investors 50% share of the profit - make sense???
You can also write in a minimum 'profit' for the investors so if you only return 2% annually on their money that you are not earning 1%.