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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Partnership questions... Posted by Ward-CA- on February 12, 2010 at 1:45 PM In Reply to: Title Holding and Partnerships posted by Justin Williams on February 03, 2010 at 1:30 PM Justin, What advice does your accountant give you when you point out that the annual California Franchise Tax Board (FTP) fee of $800 for your LLC jumps to $6,000 if the annual gross sales revenues for your LLC surpass $1,000,000 bucks? Suppose the average resale price of your typical flip amounts to just $300K…you’d reach that million-dollar threshold after just four deals! Yet, if you used a partnership structure there would be no fee whatsoever. And getting an EIN is no work at all—just go to IRS’ web site. And opening a separate bank account for each deal simplifies your annual bookkeeping rather than running everything all together. Right now you have just one partner. But don’t you anticipate on growing and doing a lot more deals with a lot more partners? Why be dependant on just one? And we simply take title in a multi-member partnership and pay back our money partners their capital and share of profits after closing too. Hope this answers your questions, ---------------Ward =================================== Hi Everyone! I took Wards class at the end of Dec and just purchased my first Trustee sale property last week. Just like Ward taught I did the vesting in a GP named after the street where the property is located. As I am actually working on finding and completing the paperwork for the partnership and the trust, as well as opening up a new bank account and get an EIN number etc. I am being asked by my accountant and some others why I am going through so much hassle for just one property. Is it necessary to set up a GP/Trusts etc. with EIN number and separate account if we only have one money partner? Why couldn't I simply take title in my multi member LLC or S Corp, and pay the money partner back his share money and share of profits at closing? This is essentially what my accountant recommended. Suggestions? Advice? What am I missing here? Thanks in advance! Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Justin, : What advice does your accountant give you when you point out that the annual California Franchise Tax Board (FTP) fee of $800 for your LLC jumps to $6,000 if the annual gross sales revenues for your LLC surpass $1,000,000 bucks? : Suppose the average resale price of your typical flip amounts to just $300K…you’d reach that million-dollar threshold after just four deals! Yet, if you used a partnership structure there would be no fee whatsoever. : And getting an EIN is no work at all—just go to IRS’ web site. And opening a separate bank account for each deal simplifies your annual bookkeeping rather than running everything all together. : Right now you have just one partner. But don’t you anticipate on growing and doing a lot more deals with a lot more partners? Why be dependant on just one? : And we simply take title in a multi-member partnership and pay back our money partners their capital and share of profits after closing too. : Hope this answers your questions, : ---------------Ward : =================================== : : Hi Everyone! : I took Wards class at the end of Dec and just purchased my first Trustee sale property last week. : Just like Ward taught I did the vesting in a GP named after the street where the property is located. : As I am actually working on finding and completing the paperwork for the partnership and the trust, as well as opening up a new bank account and get an EIN number etc. I am being asked by my accountant and some others why I am going through so much hassle for just one property. : Is it necessary to set up a GP/Trusts etc. with EIN number and separate account if we only have one money partner? : Why couldn't I simply take title in my multi member LLC or S Corp, and pay the money partner back his share money and share of profits at closing? : This is essentially what my accountant recommended. : Suggestions? Advice? What am I missing here? : Thanks in advance! [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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