Investing in stock with an LLC/LLP

T

timvansteen

Dear traders and investors,

I hope someone here knows a little more about this subject as searching on the internet for information can be confusing sometimes.

Let's say if you set up a LLC of LLP, or any other legal structure. For example, you are with 6 other investors and want to move capital into the company. Every person is now a shareholder of the company based on the capital they brought in. Together you set up an operational agreement, where it is described who does the transactions, the research, administration etc.(1: is this possible?). So let's say you appoint 1 person to all of this. All the shareholders agree that to do this it takes some work, so the person that does this gets a little salary for administration/research/maintenance. (2: is this possible?)At the end of the year, the investments returned a 10% net profit. All the shareholders want to withdraw their profits out of the company to use it personally. (3: What tax do the shareholders pay over their returns?)

I don't know if this is possible, but I am thinking about something that is similar to this and want to see if someone know more about this.

Help is appreciated.

Regards,

Tim
 
timvansteen said:
Dear traders and investors,

I hope someone here knows a little more about this subject as searching on the internet for information can be confusing sometimes.

Let's say if you set up a LLC of LLP, or any other legal structure. For example, you are with 6 other investors and want to move capital into the company. Every person is now a shareholder of the company based on the capital they brought in. Together you set up an operational agreement, where it is described who does the transactions, the research, administration etc.(1: is this possible?). So let's say you appoint 1 person to all of this. All the shareholders agree that to do this it takes some work, so the person that does this gets a little salary for administration/research/maintenance. (2: is this possible?)At the end of the year, the investments returned a 10% net profit. All the shareholders want to withdraw their profits out of the company to use it personally. (3: What tax do the shareholders pay over their returns?)

I don't know if this is possible, but I am thinking about something that is similar to this and want to see if someone know more about this.

Help is appreciated.

Regards,

Tim
More...

Your LLC agreement should spell out who each person is, what their role is, what each person can do, and how they are compensated. I would suggest contacting a professional for help in the country where your entity will reside.

Bob
 
There's no "partnership" in the Netherlands as far as I know.
The person doing the work gets a salary and is the board member, he pays the usual taxes on his salary. The other investors are just that, investors, and they receive dividends which are taxed on the company level. That's the basic setup but it depends on local laws, things like whether the investors are employed, how voting is established etc.
 
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