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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Here's how we handle it.. Posted by JamieM-CA on June 13, 2003 at 10:03 AM In Reply to: Here's how we handle it.. posted by Ward-CA- on June 12, 2003 at 3:44 PM : : : : Hi Ward, : : I read that you use a (single member?) LLC as trustee of the title holding trust, and deed the property to a Joint Venture prior to resale to sidestep CA 3.3% withholding tax. : : questions: : : 1) if the trustee was an Multi-Member LLC would this exempt the THT from the withholding tax? : : 2) what advantages do you gain by using an LLC rather than an s-corp which has been around for a much longer time. (my CPA recomends against LLC's because they are still fairly new) : : 3) do you use the LLC solely for acting as a trustee and conduct normal business under a different entity? : : : : Thanks, : : : : Travis : =•=•=•=•=•=•=•=•=•=•= : Travis, : #1. Yes, if the LLC was multi-member it would be exempt from the withholding tax. But what I’m trying to avoid is running too much gross sales receipts through the LLC which is liable for extra annual tax based on gross receipts run through the LLC.. : #2. The LLC screams to the world at large hat the members are not personally liable for any acts performed on behalf of the LLC. And you can’t lose your limited liability due to piercing the corporate veil nor if an inactive member becomes much more involved in the daily workings of the LLC. : #3. Yes I mostly use the LLC as the trustee of all 20 of my clients’ various trusts. : =•=•=•=•=•=•=•=•=•=•= Hi Ward, About "piercing the veil" on an LLC, what about fraud by a member of an LLC? Wouldn't the injured party be able to go through the LLC to hold that member liable, the same as with a S-Corp? As always, thanks for your great board and your input. JamieM Follow Ups: We're presuming lawful activity... Ward-CA- 11:32 AM, 06/13/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : : : : Hi Ward, : : : I read that you use a (single member?) LLC as trustee of the title holding trust, and deed the property to a Joint Venture prior to resale to sidestep CA 3.3% withholding tax. : : : questions: : : : 1) if the trustee was an Multi-Member LLC would this exempt the THT from the withholding tax? : : : 2) what advantages do you gain by using an LLC rather than an s-corp which has been around for a much longer time. (my CPA recomends against LLC's because they are still fairly new) : : : 3) do you use the LLC solely for acting as a trustee and conduct normal business under a different entity? : : : : : : Thanks, : : : : : : Travis : : =•=•=•=•=•=•=•=•=•=•= : : Travis, : : #1. Yes, if the LLC was multi-member it would be exempt from the withholding tax. But what I’m trying to avoid is running too much gross sales receipts through the LLC which is liable for extra annual tax based on gross receipts run through the LLC.. : : #2. The LLC screams to the world at large hat the members are not personally liable for any acts performed on behalf of the LLC. And you can’t lose your limited liability due to piercing the corporate veil nor if an inactive member becomes much more involved in the daily workings of the LLC. : : #3. Yes I mostly use the LLC as the trustee of all 20 of my clients’ various trusts. : : =•=•=•=•=•=•=•=•=•=•= : Hi Ward, : About "piercing the veil" on an LLC, what about fraud by a member of an LLC? Wouldn't the injured party be able to go through the LLC to hold that member liable, the same as with a S-Corp? : As always, thanks for your great board and your input. : JamieM 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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