How LLCs vs. C-Corps Affect Your Investment Taxes — and What the Reg CF Data Shows

WEBINAR TOMORROW: ASSET-BASED SECURITIES

Last Chance to Register: Kingscrowd x Percent Webinar is Tomorrow!

We’re sitting down with Prath Reddy, CFA, President of Percent, to discuss how asset-based securities (ABS) are redefining the fixed-income landscape in 2025.

💡 What You’ll Learn:
• The rise of ABS and its market momentum
• How ABS compares to bonds and alternatives
• Strategies to assess risk and strengthen your portfolio

📅 Date: Wednesday, April 2
⏰ Time: 12 PM ET / 9 AM PT
🎟️ Free to attend

CHART OF THE WEEK 📈

By Brian Belley | Read

Did you know the type of company you invest in can significantly impact your taxes — and potentially your after-tax returns? With Tax Day fast approaching, it's a good time to consider how a startup’s legal structure may influence your portfolio.

We've analyzed Regulation Crowdfunding data going back to 2016 and found notable differences in how companies structure themselves across industries. For example, businesses in sectors like Food & Beverage, Real Estate, and Retail tend to favor LLC structures, which can mean more complicated tax filings for investors (think K-1 forms - though these tend to be more uncommon in recent years). In contrast, high-growth industries such as Fintech, Software/SaaS, Cybersecurity, Healthcare/Pharma, Energy, and Transportation & Aviation overwhelmingly choose C-Corporations — making these companies potentially eligible for lucrative QSBS tax benefits.

Curious about how these structures might affect your tax strategy — and interested in digging deeper into LLC vs. C-Corp considerations? Check out our latest article, featuring insights, practical tips, and an additional data-driven chart showing the overall breakdown of offering entity types in Reg CF since 2016.

👉 Read the full article here

(Note: This information is educational only and should not be considered professional tax advice. Always consult a qualified tax professional for guidance specific to your situation.)

Want to share some thoughts on this story or have suggestions for a future chart? Reply to this email!

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Doc2Doc Lending

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