From what I understand this falls under a venture structure? Does it make sense to create a separate entity for my ventures to stay connected with?
Hi,
The answer depends a lot on where you're located and what business entities are available to you.
You could end up with several.
For example, you may wish to have a corporation which owns shares in the startups such that you are protected from liability.
You may then wish to have a limited partnership where investors can put in money and this LP can make loans or share investments into the startups as well and the investors could enjoy pass-through tax treatment. They would then make their own decision about what kind of entity to hold the LP investment.
Your corporation could be the general partner in the LP structure.
You really need to spend some time thinking about what scenarios are likely then go talk to both a CPA and an attorney who are located in your jurisdiction.
Hope that helps.
If you'd like to brainstorm, arrange a call.
Answered 6 years ago
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