On May 28, 8:32 am, Rich Bowen <[email protected]> wrote:
> On May 27, 2009, at 17:22, Blake Johnson wrote:
>
> > Every member of the Habari LLC will have to receive a Schedule K-1 and
> > report Habari income and expenses on their personal tax returns. This
> > is a non-trivial addition to tax prep that I would not wish upon
> > anyone, let alone a large group of people. For this reason, I am in
> > favor of limiting the LLC membership to a small subset of people
> > (perhaps the founding four?).
>
> Um ... seriously?
>
> My taxes are way too complicated already. Why would I have to receive  
> any kind of schedule anything, if I don't receive any actual  
> compensation from the corporation?
>
Some basic information on LLCs can be found here:

http://smallbusiness.findlaw.com/business-structures/llc/llc-basics.html

As I understand (speaking without benefit of a lawyer), an LLC is like
a sole proprietership in that profits/losses are claimed on individual
partners' tax returns, not on a corporate tax return.

> What baffles me about all this stuff is that the ASF has 200+ members,  
> and *none* of them have any such requirements. What's the difference?  
> Is it because it's a 501?
>
I would think so, since a 501 is a form of corporation.

<snip>

To the point of non-US citizens, according the LLC FAW on the site
referenced above, non-US citizens can be partners in the LLC. See

http://public.findlaw.com/abaflg/flg-13-3d-1.html

Rick
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