General information about legal entities for Squads is outlined here.
Here are the use cases to operate your Squad as an LLC:
- Limits Squad members' legal and financial liability
- Supports tax filings
- Form multiple LLCs with different operating agreements
- Instant, no-cost creation of different legal entities for different Squads
A Delaware Limited Liability Cooperation ("LLC") is one of the most widely-used legal entities in the US. The LLC structure limits its members' legal and financial liability, and is generally very flexible, with little governance and administrative paperwork.
Buying or selling NFTs is treated as a capital gain/loss taxable event. For NFTs you have bought, you will be taxed on how much the price has appreciated since when you first bought ETH to when you used it to buy the NFT. For NFTs you have sold, you will be taxed on how much the ETH price appreciated from the time you first bought the NFT to the time you sold it.