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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Don Roberts who wrote (291)	5/7/1998 12:46:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

Don, If you form the LLP in Nevada but you live in CA, there is the possibility that you will need to register as a foreign entity operating in CA, which is even more expensive than a domestic entity operating in the State. I don't know CA law, I'm just mentioning the possibility. "Liberal Tax Laws"? SO WHAT? What are you attempting to accomplish? Where will the partners RESIDE, and where will the BASE of operations and Tangible Property be -- as these, in most cases, determines the State Taxation MUCH more so than the State of Domicile. A general Partner is liable. But a LIMITED partner is afforded protection, much like a Corporate shareholder. What advice does the Investment Club Book say? Do they say WHY to have a foreign LLP in Nevada? (rather than only a domestic one in YOUR State?) What is the point of "no State income tax in Nevada"? LLPs generally don't pay tax ANYWHERE. Did you know that? When you move from CA to FL you may need to register the LLP there TOO, as a foreign entity. Again, I don't know, but it is something to look into. Does your BOOK cover that? Colin