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How much do taxes cost for LLCs?

For most LLCs raising on Wefunder, the only post-raise cost will be our standard $1K annual admin fee.

 

LLCs raising debt (e.g. revenue share, simple loan, waterfall agreement)

You’ll pay our standard yearly fee, which covers a variety of post-funding services listed here.

 

LLCs raising equity (e.g. SAFE, convertible note, priced round)

Say you want to aggregate investors into one line on your cap table and have Wefunder assist you with investor taxes. In that case, you’ll need to use our SPV, which can vary in cost:

  • If your LLC is taxed as a corporation, you’ll only pay the standard $1K annual fee, which covers all the services listed here.
  • If your LLC is taxed as a partnership, you’ll pay a larger fee ($5K+), due to the amount of tax documents Wefunder will need to file for your investors.

For more information on the fee and what it means to be “taxed as a corporation/partnership”, please read our full explainer here.

 

If you don’t want to use our SPV, you can take investors “direct” to your cap table. In other words, the investors will be partners of your LLC, just like you and you and your co-owner(s).

 

You’ll still pay Wefunder the standard $1,000 yearly fee for post-funding services listed here, but you won’t need to pay us any additional fees for tax filings, regardless of how your LLC is taxed.

 

Please note that you’ll still need to file taxes for your investors! Since the investors won’t belong to a Wefunder SPV, we won’t be able to assist you.

 

Please read the “Taking Investments ‘Direct’” section of our explainer for more details.

Can't find what you're looking for?

Email us: support@wefunder.com