LLC renting a home for a founding member to live in. Founding member has an unrelated tech W-2 job, and is not a day-to-day material participant in the business activities of the said - LLC. Founding member is 1 out of 3 founding members. The other 2 founding members are material participants.
The LLC is renting a home and paying rent to a third party owner of the home (no conflict of interest etc) for the non materially participant tech W-2 founding member to live in.
Are there any tax-related concerns/consequences of having the LLC rent a residence from a third party for the non-material-participating member of the LLC who has an unrelated full-time w2 tech employment?
The LLC is renting a home and paying rent to a third party owner of the home (no conflict of interest etc) for the non materially participant tech W-2 founding member to live in.
Are there any tax-related concerns/consequences of having the LLC rent a residence from a third party for the non-material-participating member of the LLC who has an unrelated full-time w2 tech employment?