Profit Allocation percentage splitting
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Profit Allocation percentage splitting If i form investment club as LLC or LLP and it will be member managed but as I am a genious trader(ha ha!?) is it possible to split profits differently than capital allocation. Example 2 members club. Capital investment will be 50% each. but year end profits will be split to 60% to me and 40% to my partner. Is it possible to do without IRS knocking on my door?? My partner is willing to enter in this type of agreement. We are simple non-acrediated investors... It is possible to set up a partnership where profits are allocated differently than by capital accounts. However, this is not something that bivio has the built in capability to handle if you are considering using bivio to do your accounting for this partnership.Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Mon, Mar 24, 2014 at 2:27 PM, Raka maka <rakamaka@inbox.com> wrote: If i form investment club as LLC or LLP and it will be member managed but as I am a genious trader(ha ha!?) is it possible to split profits differently than capital allocation. Example 2 members club. Capital investment will be 50% each. but year end profits will be split to 60% to me and 40% to my partner. Is it possible to do without IRS knocking on my door?? |
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