Hi,
I currently have a small business that is set up as a single-member LLC. If I were to accept angel funding for a percentage of equity in my company would I then have to convert my business over to a multi-member LLC?
Also, how would this contribution get recorded in my business for tax purposes? Would this funding be shown on my Schedule C (single) or Schedule K-1 (multi)? Or would only the business expense from this contribution then show up on this Schedule?
Thank you!
I currently have a small business that is set up as a single-member LLC. If I were to accept angel funding for a percentage of equity in my company would I then have to convert my business over to a multi-member LLC?
Also, how would this contribution get recorded in my business for tax purposes? Would this funding be shown on my Schedule C (single) or Schedule K-1 (multi)? Or would only the business expense from this contribution then show up on this Schedule?
Thank you!