RE Lending Crowdfunding - Taxes & LLC

[Don Chan]

Hi BP,

I've successfully invested in real estate debt crowdfunding (i.e. Peer Street, LendingHome, etc) and now would like to incorporate as a LLC (for asset protection) and declare taxes as a C-Corp (for the difference between individual and corporate tax rates). I'm hoping to use the retained earnings as business expansion funds. Has anyone done this?

Would I have any tax issues as a Personal Holding Company (PHC)?  Can I be exempted from PHC as a "lending company" or based on the concept that "Interest received on loans is business income if you are in the business of lending money?"

An even more advance tax question, would real estate debt crowdfunding have any issues with PHC as it relates to "making loans evidenced by, or purchasing, certificates of indebtedness issued in a series, under a trust indenture, and in registered form or with interest coupons attached?"

Thanks,

Don