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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Multi-member entities are best in CA Posted by Ward-CA- on September 17, 2003 at 6:40 PM In Reply to: LLC posted by gcastro on September 17, 2003 at 9:41 AM : Ward, I am selling a property that I own as trustee of a trust, and would like to limit my liability (risk of being sued for "x" reasons, disclosures, etc.) specially when I sell the property. I would like to accomplish this by using an LLC. Here are 3 questions: : 1. Would I have the LLC be the Trustee of the Trust of the property and me be the beneficiary? : 2. Can your Financial Fitness LLC be the trustee of the trust? : 3. If the LLC gets sued , does that mean that your financial Fitness LLC gets sued, and if so isn't that dangerous for you? -=-=-=-=-=-=-=-=-=-=-=-=-=-=- Gonzalo, I guess you've already forgotten about CA's 3.3 % advance income tax on the gross sale price of real property wherein the seller is an individual or uses an individual's SS#. For some unfathomable reason CA thinks that a trust is the same entity as an individual and thus not exempt from the tax. So to avoid this tax don't open escrow until after the property has been transferred to a multi-member entity like a corporation, partnership, LLC or joint venture, etc. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, I am selling a property that I own as trustee of a trust, and would like to limit my liability (risk of being sued for "x" reasons, disclosures, etc.) specially when I sell the property. I would like to accomplish this by using an LLC. Here are 3 questions: : : 1. Would I have the LLC be the Trustee of the Trust of the property and me be the beneficiary? : : 2. Can your Financial Fitness LLC be the trustee of the trust? : : 3. If the LLC gets sued , does that mean that your financial Fitness LLC gets sued, and if so isn't that dangerous for you? : -=-=-=-=-=-=-=-=-=-=-=-=-=-=- : Gonzalo, : I guess you've already forgotten about CA's 3.3 % advance income tax on the gross sale price of real property wherein the seller is an individual or uses an individual's SS#. : For some unfathomable reason CA thinks that a trust is the same entity as an individual and thus not exempt from the tax. : So to avoid this tax don't open escrow until after the property has been transferred to a multi-member entity like a corporation, partnership, LLC or joint venture, etc. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ 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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