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

To: Colin Cody who wrote (292)	5/8/1998 1:06:00 AM
From: Don Roberts	Read Replies (1) \| Respond to of 1383

Colin, I don't think we will have to register as a foreign entity in CA ... we have a resident agent in NV which we will use as the address, and the bank account is in NV. The transactions are taking place in a broker through NY. Complicated ... as long as CA gets their taxes, they are happy. I'm not sure about the registration thing in CA, but we are doing business in NV ... just things are done over the internet. I know this is a grey area for the law. As long as we pay taxes, and as long as we register to do business in the state of Nevada, I don't see any problems. A General Partner is afforded protection in NV, much like limited partners are. He cannot be sued, which is not the case in CA. The investment club book does not say to have a LLP in NV, it just says that a LLP is the most common form for an investment club. It is much easier to set up than a Sub-S Corp. Having it in NV has more benefits than having it here in CA for our case. For instance, when I move to FL, I won't have to pay state income tax on it if it is NV. If it was in CA, I'm sure I would, even if I lived in FL. I know that LLP's don't pay income tax ... income tax is passed through to the partners. I appreciate your concerns and hope this answers your questions. Don Roberts