You may have heard the term K-1. Maybe you know what it is, maybe you don’t. K-1 refers to the IRS form an investor in an LLC treated as a partnership for tax purposes would receive stating the “Partners Share Of Income, Deductions, Credits”. This article by Best LLC Services.com does an excellent job of simplifying the explanation.
Stelvio Equity Group LLC typically creates a manager-managed LLC structure when acquiring multifamily apartment properties. The manager LLC (Stelvio Equity Group LLC) manages the investor entity (Investment LLC).
The result is a multi-member LLC holding title to the property that is generally taxed as a partnership, and therefore, is generally required to generate a K-1 statement to participants.
Read this short article for a general explanation of K-1s.
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