What Investors Need to Know About Taxes
Tax Structure
PeerInvest investment entities are known as Limited Liability Companies (LLC). An LLC is a legal business structure that shields owners from the debts and liabilities of the company.
All investors on our platform are members of an LLC registered in Delaware, bound together by signed operating agreement, that for taxation purposes are considered a partnership. As a result, the legal structure is a flow through entity which allows the members to recognize the profit/loss on their personal tax returns, therefore avoiding the "double-taxation" of a corporation.
Schedule K-1
The schedule K-1 is a tax document used to report a member's share of the profits, losses, and dividends of the LLC. These transactions are reported on a Form 1065 by the company. All members are required to report the Schedule K-1s on their personal tax returns for each year they are members.
Implications
Please wait to file your personal tax returns until you have received your Schedule K-1s for all investments on our platform. Feel free to reach out to us at support@peerinvest.io if you have any questions or consult your CPA / tax specialist for further advice.
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Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. PeerInvest does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. PeerInvest does not assume responsibility for the tax consequences for any investor of any investment.