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

To: Colin Cody who wrote (307)	5/23/1998 1:15:00 PM
From: Monty Lenard	Respond to of 1383

<...General Partnership or Joint Venture....> Have no problem with that! In fact, that is exactly what a friend of mine and I did. I was assuming that the intent was to set up a "formal" entity. I still wonder what good the "limited liability" is going to do an investment venture. I'd like to see the reasoning behind such advice from the National Investment Club organization. I must be missing something, and would like to "see the light" I don't know either! When my friend and I set our account up with Schwab, we used the "Joint Tenants in Common" (really don't remember)forms with him as the primary "contact".(Better know & trust the person you do this with). The 1099 is submitted by Schwab using his SS number and we have to treat my portion as a "nominee distribution" from him to me. I really don't think the "liability limitation" comes into play (as you stated). Maybe the brokers "like" dealing with an entity such as LLC where multiple traders/investors are involved??? Schwab has an account for "Investment Clubs" where separate 1099's are sent to each member based on their % of ownership. BWDIK Regards Monty