- Jurisdiction
- Oklahoma
I've been researching the idea of starting an LLC to pool together assets (currently just securities, but hopefully rental property in the future) between my siblings and I, but have run into a few legal questions:
1) Can the initial capital contributions into the LLC's brokerage account be uneven, but have the operating agreement stipulate that each sibling has an equal share. (e.g. There are four total members. Three of the siblings contribute at the beginning (say 10k, 20k, and 40k in securities, respectively), and one does not, but the return on investment is split equally (each sibling gets 25%))?
2) I've read conflicting articles discussing "self-employment" taxes on LLCs. If this particular LLC is very low maintenance (say the securities are all sold and then everything is invested in ETFs at the beginning and just left to hopefully grow) and all members are either employed outside of the LLC or a student, would these taxes apply? None of us would take a salary and no "employees" would be managing the LLC.
3) Would it be best for the siblings with securities to sell them and just transfer the cash into the LLC or transfer them directly into the LLC and then decide as a group to sell and reinvest in different options (other securities, ETFs, real estate)?
4) Does it matter if the siblings are in different states? Most are residents of Oklahoma, but I work and live in Missouri?
5) Any general thoughts or opinions on this are also appreciated. Just want to do my research first.
1) Can the initial capital contributions into the LLC's brokerage account be uneven, but have the operating agreement stipulate that each sibling has an equal share. (e.g. There are four total members. Three of the siblings contribute at the beginning (say 10k, 20k, and 40k in securities, respectively), and one does not, but the return on investment is split equally (each sibling gets 25%))?
2) I've read conflicting articles discussing "self-employment" taxes on LLCs. If this particular LLC is very low maintenance (say the securities are all sold and then everything is invested in ETFs at the beginning and just left to hopefully grow) and all members are either employed outside of the LLC or a student, would these taxes apply? None of us would take a salary and no "employees" would be managing the LLC.
3) Would it be best for the siblings with securities to sell them and just transfer the cash into the LLC or transfer them directly into the LLC and then decide as a group to sell and reinvest in different options (other securities, ETFs, real estate)?
4) Does it matter if the siblings are in different states? Most are residents of Oklahoma, but I work and live in Missouri?
5) Any general thoughts or opinions on this are also appreciated. Just want to do my research first.