Considering buying a 1% stake in a local small business and would receive a K1 with my share of the LLC’s annual profit/loss.
I don’t have anything I could write off the losses against and obviously would prefer not to have to report the income. Is there another way I could structure this investment so that I don’t receive a K1?
Maybe the deal could be structured in a way that I only report gains on investor distributions or upon liquidation/exit?