I can definently help you with this. What kind of business is it?
the business would simply invest in start-ups. So i provide money to obtain an equity interest in new start-up businesses.
First and foremost, I would advise you to form a domestic corporation through your state's Secretary of State's Office. Once you have prepared your Articles of Incorporation and your bylaws you are presumed to be a subchapter C corporation. This means that you are taxed as a shareholder and must pay corporate tax. Also, it sounds as if you will be a holding company as defined by the IRS. The excerpt below is from Title 26 Section 542 of the US Code. This exerpt defines a holding company. Read through it and see if you believe your business would be included in this subchapter of the IRS Code.
thank you for the informative response.
But as a followup: 1. can i be an LLC rather than a subchapter c? and 2. back to my original question. Is there any business license requirements for me to invest my own money (such as being registered with SEC/FINRA, ect)?
I can answer the LLC question from a liability stand point only. I will tell you to list this question for an accountant as well. A lot of the things we do overlap. I can tell you that an LLC gives you limited liability and shields you personally from anything the company does. As far as financial benefit of LLC vs. Inc., some CPAs here in my jursidiction are very quick to have my clients stray away from LLCs due to additional tax provisions. It sounds as if you will be a holding compnay and you will have extra tax burdens so I would make sure you find you a good CPA so that you do not get in trouble with Uncle Sam! Let me research the sec question further
A holding company does not register with the sec as I understand it.
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