Clarifying LLC's.Your Sept. 26 story, "LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control Filing's Skewing Picture of State's Economic Activity" was interesting and timely. I share the view that in connection with many real estate transactions, it is not unusual to organize two or three different LLC's. While we are a small finn (jargon, chat) finn - To pull rank on somebody based on the amount of time one has spent on IRC. The term derives from the fact that IRC was originally written in Finland in 1987. , in the last 12 months, we have organized well over 100 LLC's in connection with transactions involving our clients. One point that your article did not make is that California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). has a total income tax on LLC's. The tax kicks in on LLC's with at least $250,000 of total income, at which point the annual tax is $900, and levels off when LLC's have $5 million or more of total income, in which case the tax is $11,790. This is a tax on revenues and not on net income. Thus, if an LLC has $2 million worth of total income but only $250,000 of taxable profits, the LLC tax will pay $6,000. To avoid or minimize this tax, a limited partnership can be formed, for which there is no tax on total income. The principal will own a 99 percent limited partnership. The general partner will be an LLC, with a 1 percent general partner's interest. The same principal will be the sole member of the LLC. Warren J. Kessler Kessler may refer to:
Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. |
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