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makrita1
RE Investor
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DE series LLC - must file w/IL??
Monday, January 07 2008 06:40 PM
Hi guys:
Am being told by some 'gurus' that now I must file as a 'foreign LLC' doing business in IL with Secy of state of IL (and therefore pay all their fees on top of DE fees). I'm only holding rental property in these LLCs (thru a VA land trust), and using my c-corp to manage them. It just seems like I'm duplicating costs by filing in DE for privacy and now I have to file in IL too?!? What has been your experience?
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Greg
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Re:DE series LLC - must file w/IL??
Tuesday, January 08 2008 12:20 PM
The reason that an LLC has the highest fees of any entity in IL is because they are the most prominent in number. Our socialist governor decided to increase the state's income by tripling the cost of an LLC in this state. Is the LLC the trustee for the VA land trust or the beneficiary? Are you taking any income in the LLC or is the money all going towards the c-corp?
As for the "gurus", I believe half of what I see and none of what I hear. I would like to see chapter, page and verse of this supposed rule. Ask them to point you towards the law. They may be correct, but most of the time, hearsay turns into fact through rumors.
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makrita1
RE Investor
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Re:Re:DE series LLC - must file w/IL??
Tuesday, January 08 2008 12:27 PM
It is holding property in IL, the LLC is beneficiary of the VA LT, and no income is showing on the LLC, it is all passed onto the C-Corp.
I agree about the gurus... but thought I'd check in case I didn't understand that part of your class on L/T.
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Greg
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Re:Re:Re:DE series LLC - must file w/IL??
Tuesday, January 08 2008 12:54 PM
Now we are going to need a CPA who is competent in tax law. If all the income flows through and the LLC sees a net zero bottom line, is the LLC even visable? Does it need to be since it is the beneficiary? The whole point of a land trust is to keep the beneficiary a secret. Is the trustee out of state? If not, simply add a clause in your trustee agreement stating that if they are served, they are automatically fired. I am not seeing where you could get into hot water by not paying these outrageous fees. The LLC should be invisible if everything is set up properly.
I haven't taught any classes. I am just an investor trying to learn. And just so our hosts don't take offense at my "gurus" comments, I have heard them say nothing I disagree with. I am referring to the frauds on late night tv or some of the other folks that never closed a deal and only sell books and tapes.
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makrita1
RE Investor
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Re:Re:Re:Re:DE series LLC - must file w/IL??
Tuesday, January 08 2008 01:29 PM
The LLC is not that 'invisible' as it does show a loss from time to time that flows to my personal taxes.
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Re:Re:Re:Re:DE series LLC - must file w/IL??
Wednesday, January 09 2008 05:02 PM
Makrita,
Your "advisor" does not understand the structure that you have set up. Since the LLC is the beneficiary of a land trust it is NOT "doing business" in Illinois. The LLC is an investor in a trust. The trust is the owner of the property.
Randy Hughes
866-696-7347
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makrita1
RE Investor
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Re:Re:Re:Re:Re:Re:DE series LLC - must file w/IL??
Wednesday, January 09 2008 07:24 PM
thanks, I checked in with Secy of State/IL and they tell me if I'm not 'doing business' (i.e. making a profit) here in IL, I don't have to file anything... Thanks Randy.
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