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Politics : Idea Of The Day

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To: Logain Ablar who wrote (7880)	8/24/1997 2:06:00 PM
From: Monique C. Cushman	of 50167

INVESTMENT CLUB Hi Tim, Here are my 2 cents thoughts regarding a "Partnership". Indeed there is a big tax advantage to a Partnership. In order to eliminate the need to disolve the Partnership ("From a tax standpoint any change in partners interest disolves the partnership"): Could there be an article in the Agreement dealing with "Capital Accounts"? In this case a Capital Account would be established in the name of each partner. Any increase or decrease in the value of the Partnership would be credited or debited to each partner's Capital Account. In case of voluntary withdrawal of a partner, he/she sells her account to a new partner, keeping in mind that if such liquidation of said account incurs expenses, the departing partner would receive a little less than 100% of the proceeds (about 95 %). Concerning a Corporation. A Sub-chapter S Corporation would eliminate the double taxation. However, I believe the law now allows up to 100 partners (to be checked out). The other big draw back of a "S" Corp. is: all partners have to be American. Best regards, Monique

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