club_cafe: Re: Adding a partner
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club_cafe: Re: Adding a partner Here's what I would do about the member that withdrew. Strike out her signature with a single line and add next to it "Resigned, see minutes of [date]." You should keep the resignation letter and a copy of your minutes as official club records. Ira Smilovitz In a message dated 01/15/03 3:12:39 PM Eastern Standard Time, jfillman@bivio.com writes: Thank-you for your reply. The new member is not buying out Along the lines of this thread, does anyone know what we need to do with regards to the IRS when a member leaves/joins? I thought I read somewhere that we need to refile the partnership agreement, and perhaps even receive a new EIN. ryanj Hundredth Monkey Investment Club Curious George (Education Director) IraS1@aol.com wrote: > Here's what I would do about the member that withdrew. Strike out her signature with a single line and add next to it "Resigned, see minutes of [date]." You should keep the resignation letter and a copy of your minutes as official club records. > > > > Ira Smilovitz > > > > In a message dated 01/15/03 3:12:39 PM Eastern Standard Time, jfillman@bivio.com writes: > > > > Thank-you for your reply. The new member is not buying out > > the old member. The old member withdrew about 8 months ago > > and was "cashed out" according to the provisions in our > > agreement. As I said, from a financial and accounting > > perspective, everything is very clear. My question is how > > to add the new member to the partnership agreement. The > > original agreement has a signature page where all 10 > > original members signed. I like the idea of a rider for new > > members and found an example of one on the internet. Do we > > have to do anything with the old member to remove her from > > the partnership? She notified us in writing as the > > agreement requires, but we never had her sign any type of > > rider removing herself from the partnership. > > > > > > > > IraS1@aol.com wrote: > > >In a message dated 01/15/03 10:41:34 AM Eastern Standard Time, juan.mostek@kellogg.com writes: > > > > > > > > > > > >As to your specific situation it appears you have a new member buying out an > > > > > >old member? There is a way to make this transaction happen in Bivio. > > > > > > > > > > > > > > > > > >You do NOT want to have a new member buy out an old member. This will create accounting nightmares for the club. The correct procedure is to have the old member withdraw and the new member join. All transactions are between members and the club, not between members individually. The club gives the old member the value s/he is entitled to (whether in stock or cash) and the old members units are "canceled." Then the new member buys into the club and purchases new units in whatever amount s/he desires (consistent with the club's bylaws). If, by coincidence, the amounts are the same, it will "look" like the new member bought out the old member, but in reality they should be maintained as separate transactions. > > > > > > > > > > > >Ira Smilovitz Ryan J. Lucas writes: > Along the lines of this thread, does anyone know what we > need to do with regards to the IRS when a member > leaves/joins? > > I thought I read somewhere that we need to refile the > partnership agreement, and perhaps even receive a new EIN. You have to file a "final" K1. This is completely automatic with bivio if a member is fully withdrawn by the end of the year. Rob |
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