I’m considering investing in auto notes and would like to know if doing so through a Limited Liability Company (LLC) is permissible. Are there any specific legal restrictions or benefits I should be aware of when investing in this way?
I’ve read that investing through an LLC can help protect your personal assets since the LLC itself is a separate legal entity, which is pretty cool if things don’t go as planned. But, I remember someone mentioning that it might complicate your taxes a bit, since you’d have to file separate returns for the LLC and yourself. So, if you’re not super comfortable navigating the legal or financial details, it might be worth chatting with a lawyer or accountant who knows the ropes! Anyone tried this already and can share how it went for them?
Yeah, using an LLC can be a smart move, mainly for asset protection like Mia said, but beyond that, some folks like the flexibility it offers too. Depending on your state, there could also be differences in how profits are taxed. I think it also provides a bit of anonymity for the investors, which some might prefer. But yeah, someone mentioned it might involve more paperwork, which can be a headache. The legal and accounting fees to maintain the LLC could add up as well. Seems like it balances between protection and complexity, so weighing the pros and cons is key. Pretty sure it’s doable, though having a good CPA might make a world of difference here.