Discussion:Llc vs. partnership
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| Revision as of 18:51, 27 March 2009 Ddaallas (Talk | contribs) (I don't do CA an) ← Previous diff |
Revision as of 22:06, 27 March 2009 Dingodile (Talk | contribs) (Just go with the) Next diff → |
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| {{ForumReplyPost|UserID=Ddaallas|Date=27 March 2009|Text=I don't do CA and am not familiar with the gross receipts tax, but generally, if an LLC isn't a good idea, you could do a LP with an s-corporate GP. Align the ownership percentages of the two entities. It's a couple extra tax returns, but if the gross receipts tax is such a big deal, it might be worth it. Basic asset protection suggests avoiding the general partnership or an individual GP in an LP because of unlimited personal liability. If the other partners want to do a general partnership, she might want to do this with just her 25% anyway - depends what her liability exposure is.}} | {{ForumReplyPost|UserID=Ddaallas|Date=27 March 2009|Text=I don't do CA and am not familiar with the gross receipts tax, but generally, if an LLC isn't a good idea, you could do a LP with an s-corporate GP. Align the ownership percentages of the two entities. It's a couple extra tax returns, but if the gross receipts tax is such a big deal, it might be worth it. Basic asset protection suggests avoiding the general partnership or an individual GP in an LP because of unlimited personal liability. If the other partners want to do a general partnership, she might want to do this with just her 25% anyway - depends what her liability exposure is.}} | ||
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| + | {{ForumReplyPost|UserID=Dingodile|Date=27 March 2009|Text=Just go with the LLC and bite the bullet on the gross receipts tax. Although it's very annoying, it's not terrible onerous (I would assume your client is looking at the $900/year tax). An LLC is simply the best structure for real estate from both a tax and asset protection perspective.}} | ||
Revision as of 22:06, 27 March 2009
Discussion Forum Index --> Basic Tax Questions --> Llc vs. partnership
Discussion Forum Index --> Tax Questions --> Llc vs. partnership
| 27 March 2009 | |
| HI Everyone,
I have a client with a 25% interest in a rental property. She wants to know what is best, to form an LLC, LLP or general partnership. We're in California, so LLC has the gross receipts tax. I will advise her to talk to an attorney, but what are your general suggestions when clients ask. I don't care for LLCs because of the gross receipts tax, but I know they do offer some benefits. Thanks for any input! | |
| 27 March 2009 | |
| I don't do CA and am not familiar with the gross receipts tax, but generally, if an LLC isn't a good idea, you could do a LP with an s-corporate GP. Align the ownership percentages of the two entities. It's a couple extra tax returns, but if the gross receipts tax is such a big deal, it might be worth it. Basic asset protection suggests avoiding the general partnership or an individual GP in an LP because of unlimited personal liability. If the other partners want to do a general partnership, she might want to do this with just her 25% anyway - depends what her liability exposure is. | |
| 27 March 2009 | |
| Just go with the LLC and bite the bullet on the gross receipts tax. Although it's very annoying, it's not terrible onerous (I would assume your client is looking at the $900/year tax). An LLC is simply the best structure for real estate from both a tax and asset protection perspective. | |
