My job has offered me an associate position which means I will become a member in the LLC.
The cost for 250 units (membership interest 2.25%) is $25,000. I will get profit sharing of 2.25%.
The LLC requires that the $25,000 be paid in 5 years and has offered taking partial payment if agree to a loan through them with a 6.25% interest.
I have the $25,000 sitting a bank but is it more wise to pay just $5000 a year for 5 years and take their 6.25% interest rate? (Considering the market is not doing well right now). If I did take partial payment and had interest, is that interest tax-deductable?
If I pay the $25,000 upfront then is any of that money tax deductable when I file taxes using my new K-1 wages?