Ltd ventures llc
Newbie
- Apr 3, 2024
- 34
- 31
I see a lot of posts here inquiring about renting or using someone else’s account. Either in JV or make money tabs or WTB.
I don’t understand why this is feasible.
If someone is renting your account, they intend to make money: given. They will as compensation usually share/give 25%-50%. I usually see 25% for renting and 50% for partnership.
But what I never see mentioned in these posts is tax burden. The person who owns the account is using their own social security number, hence the income from that venture is taxed in the mix with all their other income. It doesn’t affect their partner/person renting the account at all, tax-wise.
at 25%, expecting that the renting or partnership makes money, the account owner is paying all that in taxes. They have no deductions. And they cannot tell IRS they lent out their account? Hence I see no profit in lending an account for small profit. Similar to sharing. With a 50% profit after taxes your share is much less than that of your partners.
Idk if I’m missing something? Or these negotiations take place behind the scenes. But it seems like a bad deal all the way around. But I see so many requests for this.
Could you guys clue me in a n what I’m missing or why this is worth it?
I don’t understand why this is feasible.
If someone is renting your account, they intend to make money: given. They will as compensation usually share/give 25%-50%. I usually see 25% for renting and 50% for partnership.
But what I never see mentioned in these posts is tax burden. The person who owns the account is using their own social security number, hence the income from that venture is taxed in the mix with all their other income. It doesn’t affect their partner/person renting the account at all, tax-wise.
at 25%, expecting that the renting or partnership makes money, the account owner is paying all that in taxes. They have no deductions. And they cannot tell IRS they lent out their account? Hence I see no profit in lending an account for small profit. Similar to sharing. With a 50% profit after taxes your share is much less than that of your partners.
Idk if I’m missing something? Or these negotiations take place behind the scenes. But it seems like a bad deal all the way around. But I see so many requests for this.
Could you guys clue me in a n what I’m missing or why this is worth it?