In my last post, I blogged about online funding platforms. In that post, I described the typical model of indirect investing through a special purpose vehicle (“SPV”) with the platform sponsor taking a carried interest in the SPV’s profits from the portfolio company and no ourcrowdtransaction fee, as a means of avoiding broker-dealer regulation.

Lately I’ve been approached by current and prospective clients about ourcrowdonline funding platforms, either by folks interested in forming and operating them or those interested in raising capital through them. There seems to be a lot of confusion surrounding how they work and what the legal issues are, so here’s my attempt to bring some

            The debate over the taxation of “carried interest” has been percolating for years and the release of Mitt Romney’s personal tax returns in connection  with his presidential campaign  generated more wide-spread interest in the subject.  And while the relatively preferential tax rates that fund managers pay on these investment profits survived the “fiscal cliff” budget