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if the IP is owned by an llc and you sell your shares of the llc, does that simplify things? in acquisitions in general, if the acquirer is buying you out by bu
by brosephius 16y ago
if the IP is owned by an llc and you sell your shares of the llc, does that simplify things? in acquisitions in general, if the acquirer is buying you out by buying your shares, does that generally result in a capital gains tax, and not ordinary income tax? (if so, my daydreaming of starting and selling a startup for millions just got even better)
- camz 16y agoWhen you sell the equity in an LLC, then you're selling an investment and if you hold that investment for longer than a year or 366 days or more, then yes it would be long term capital gains. Generally, its better for you and the buyer to sell equity in a legal entity that to move the assets around. Its easier, less annoying and you dont need to worry about transferring a bunch of titles.