Choosing Your Profile
How to decide which investment profile to use
When you invest, you choose which investment profile to use. This determines the legal entity making the investment.
Why Does It Matter?
The investment profile you choose determines:
- Legal ownership — Who legally owns the investment (you personally, your LLC, your trust, etc.)
- Tax treatment — How the investment income is reported and which tax forms you receive
- Reporting — The name that appears on legal documents like the subscription agreement
Choosing the right profile ensures your investment is structured the way you intend.
Profile Options
Choose Individual when you are investing your own personal funds. This is the most common choice and the simplest to set up. The investment is made in your name, and your K-1 tax form is issued directly to you.
Best for: Most investors making personal investments.
Choose an entity profile when you have a business structure set up for investing. This is common among investors who:
- Have an LLC or holding company specifically for angel investments
- Want investments held separately from personal assets
- Prefer the liability protection or tax structure that an entity provides
You will need to provide the entity's legal name, EIN, registered address, and authorized signer information. Entity profiles may require additional verification.
Best for: Investors with an existing business entity for investing.
Choose Trust when investing through a revocable trust, irrevocable trust, or Solo 401(k). This is common for estate planning purposes or when investments are managed within a trust structure. You will need to provide the trust name, trustee details, and tax information.
Best for: Investors managing wealth through a trust structure.
Choose IRA when investing through a self-directed Individual Retirement Account. This requires a custodian — a financial institution that holds and manages the IRA assets. Your custodian will handle the payment rather than you sending money directly.
Best for: Investors using retirement funds for alternative investments.
Choose DAF when investing through a Donor-Advised Fund. Like an IRA, the funds come from your DAF sponsor rather than from your personal bank account.
Best for: Investors making charitable investments through a DAF.
If you are unsure, starting with an Individual profile is the easiest option. You can always create additional profiles later for different investments.
Using Multiple Profiles
You can create as many investment profiles as you need. For example, you might have:
- An Individual profile for personal investments
- An LLC profile for investments made through your holding company
- An IRA profile for retirement-funded investments
Each time you invest, you simply choose which profile to use. You can create new profiles during the investment flow or in advance from your account settings.
Common Questions
Can I switch profiles after investing? No. The investment profile is set when you confirm your investment and cannot be changed afterward. If you need to use a different profile, you would need to cancel the existing investment and create a new one with the correct profile (subject to cancellation availability). Choose carefully on the review screen.
Do I need a new profile for every deal? No. You can reuse the same profile for as many investments as you like. Only create a new profile if you want to invest through a different legal entity.
I am not sure which profile type to use. What should I do? If you are investing your own money and do not have a specific business entity or trust for investing, choose Individual. You can always create additional profiles later if your needs change. For tax or legal advice about entity structuring, consult a financial advisor.
Last updated 2 weeks ago
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