Be sure to have reasonable documentation in case  you get audited. 

The premiums is dependent on head count and mixing the two businesses makes no sense since I was planning on hiring help for my management business, and as it turned out, the state comes by and does an audit of your business and locations.

They are permitted to publicly advertise in a cost-effective manner.Business are permitted to use social media and other advertising techniques reaching a much broader group of investors.Businesses have the freedom in making disclosures to investors which can enhance an investors interest in investing, likely to solidify more deals for the business owner.Financial statements produced by the business for investors do not need to be reviewed or audited by an independent accountant.

Be aware though that these types of funds cost around $10k to create and you also have to have a yearly 3rd party audit which will run you another $10-15k.

And I want to do it the way the IRS wants in case I'm ever audited.

Clear trail is the tricky part...I am always worried that if I get audited the IRS will find something that I was not aware about...How do you do your distributions, if you dont mind me asking?

I typically represent anywhere from 25-50+ taxpayers in audit at any time.

This will give you the best ROI and audit protection.

If/when they get audited, they will have to produce invoices or receipts. 

Make sure you work with an accountant who is familiar with that.Enrolled Agent, or an EA, is a designation for a professional who practices in taxation.The requirement to become an EA is to pass 3 exams related to tax and to take continue education in tax related matters.Certified Public Accountant, or CPA, is a designation for a professional who performs Tax, Assurance or Advisory.The requirements to become a CPA is 120 or 150 college credits(depending on state) passing 4 exams related to taxation, law, accounting, audit and management.