Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: greyJester Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122911  
Subject: Re: partnership incorporation: ugh Date: 10/20/1999 4:06 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

okay, let's try again:

i am in CA.
another partner is in WI.

as i understand it, if i form the partnership in CA, then the WI partner, according to CA law, will have to file nonresident tax returns for CA. since it's a partnership there is pass-thru taxation. and since they probably have to pay WI state tax on the income they probably can avoid paying CA state tax on the income. however, they still have to go through alot of paperwork.

if i form in WI, then the WI partner will not have to file a nonresident tax return. i will have to file a WI nonresident tax return myself, possibly; i will pay CA state income tax on any income received thru the partnership. the partnership may have to register as a foreign partnership if it does business in CA.

in either scenario both partners have to pay federal income tax.

my question is not about decreasing the taxes i pay. instead, i want to know if by forming the partnership in another state i can reduce the number of tax forms my partners have to fill out.

since the partnership is for the purposes of directing investments, where it does business is open to interpretation, i think.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:

Are We Reaching Peak Apple?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.