Question for Bud B or Bronchick - Posted by Chuck P

Posted by Bud Branstetter on January 31, 2000 at 23:05:53:

Texas passed the law that exempts 100K in held earnings from a small corp. so franchise tax help was achieved. The hassle in Texas is that the cost for an LLC is $200 per person per year versus the one time $750 for the FLP.

Question for Bud B or Bronchick - Posted by Chuck P

Posted by Chuck P on January 31, 2000 at 09:41:57:

I recently was listening to some tapes made by Robert Kiyosaki and his expert on business entities said the LLC are relatively new and untested in regard to case history.


I am getting into rental props. Have one house I’m going to convert for long term. This is a no-no in a C corp. I want to form a Ltd Partnership with the C corp being the general mngr w/ a 1% interest. The other route I was considering, more flexible and cheaper in the long run, was an LLC holding beneficial interests in the various rental properties all in individual trusts - compartmented. Robert’s advisor, on the tape “What My Rich Dad Taught Me About Corporations” said that this ws not wise.

Robert uses a C corp with Ltd Partnerships.

Any thoughts about this or general consesus? I have spoken with my atty regarding this and he said Ltd Partner as well.


Re: Question for Bud B or Bronchick - Posted by Bronchick

Posted by Bronchick on January 31, 2000 at 13:31:15:

Check the copyright date on his book. The information he is giving is out of date. LLCs have been tested in court and are safe to use in lieu of the corp/flp combination. Also more flexible and cheaper to do, except in high-franchise tax states, such as MA & TX