I can answer a bit on the tax situation (IANAA). The whole deal would be taxable at your marginal tax rate, minus whatever your basis would be. Your basis would

I can answer a bit on the tax situation (IANAA). The whole deal would be taxable at your marginal tax rate, minus whatever your basis would be. Your basis would be any money that you put into the business. Since it would be additional income that would be taxed at a personal rate, you would be well to sack everything you can away on a tax deferred basis (IRA, 401ks, 529 plans for kids) to avoid a beating on taxes.