We formed as a partnership in 1996 and have had good results under this
structure. We received a federal tax ID and I have always completed the
Partnership Tax returns as required. All members receive a 10-K each spring and
report any club dividends and gains on their personal tax returns.
Bivio has a neat tax return feature that makes tax season very easy. All
partners share in the ownership based on the money each partner invests.

I do not see any advantages of forming as an LLC. My understanding is that LLCs
have some tax advantages ( in a profit driven setting) and also allow for
partnership protection. Since clubs pass along all gains onto each partner, I
don't really see any incentive under an LLC.

Appreciate any other feedback on this issue.

J Mostek






David Rathke <fc00493@bivio.com> on 09/03/2002 10:35:52 PM

Please respond to "The Club Cafe" <club_cafe@bivio.com>
                                                              
                                                              
                                                              
  To: club_cafe@bivio.com
                                                              
  cc: (bcc: Juan Mostek/BattleCreek/USA/Kellogg)
                                                              
                                                              
                                                              
  Subject club_cafe: What type of business
  :
                                                              





We are a trying to start a new club and would like to hear
any ideas about what type of business do we start? We are
thinking a Limited Liability Company is our best option.
Any other thoughts or ideas?