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?

  • Is that company worth more than a million dollars? – gnasher729 Jan 19 at 12:06
  • @gnasher729 Yes – ParoX Feb 1 at 23:55

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