Can anyone help me? I have a question. I am not a loan originator, I am an investor. Since 2017, I have been doing private lending through private/hard money loan originator. I receive 1099 interest income from loan servicing company, now I have about 20+ active loans with various brokers, other loans have been paid off. Can this interest be considered "lending business" to report as "business income" i? If I can report lending income as business income, do I need to have any entity? Right now I do not have an entity? Can I just have a sole proprietorship, LLC, S Corp or do I have to have C Corp? What entity is the best in terms of tax saving? If I cannot treat interest income as business income, what entity or not having an entity do you recommend from tax saving perspective? Thank you.
