LLC AND taxes for Syndication Participation

[Jared F.]

Im participating/investing in a multi family syndication for the first time. What are the best practices for participation? Should I create and LLC for the investment? Should I create and EIN and a business checking account for the LLC? Any tax reporting things to keep in mind for my accountant? Any other tips?

[Theo Hicks]

Hi Jared,

I echo the advice in this thread about the LLC vs. investing in your personal name. As for the tax reporting, you should receive a K-1 at the beginning of 2019 to give to your accountant for tax purposes. That would be a good question to ask the GP: when will you be sending out the Schedule K-1s?