- Q: Why are you mentioning my ownership percentage?
A: The tax laws that apply to loan-outs define a valid loan-out as having more than 10% of its stock owned by the individual providing services.
- Q: I have an LLC, not a corporation. I don't have 'stock.'
A: Instead of stock, an LLC will often have an equivalent such as ‘units’.
- Q: What if I own exactly 10%? How would I proceed?
A: The requirement is for more than 10%.
- Q: I am the only employee of my loan-out. Is it assumed I own 100%?
A: Regardless of how many employees your loan-out has, you must verify that you own more than 10% of the stock.
- Q: If I own 10% or less, does that mean I can't be paid as a loan-out?
A: Please consult your legal and tax advisors as well as the production.