Questions For Filing MN State Investment Club, LLC Partnership Return For 2010

Eugene P. Lang on

I've been working with investment clubs for 44 years but
mostly in ND and this is the first year I've had to deal
with the MN state M3 & M3A as a part of a MN state
investment club return. In Oct 2010 I organized a 24 member
online investment club which we organized in MN.
These questions may be best answered by Rip.
1. Does a MN registered Investment Club, LLC, with income of
less that $250,000, have to fill out anything else other
than the header on the MN M3? I know you have to include a
club 1065 along with the club K-1's.
2. Does having any non MN residents as invdividual partners
of the club create any issues when filing the MN M3?
3. Do schedules KPI and/or KPC have to be enclosed with the
MN M3?
4. This is not the case currently with our club, however,
the following question has come up. Can a Canadian citizen
who is not also an American citizen be a member of our
online club?
Thanks in advance for your reply.
Butch Lang

Rip West on

Hi Butch,

<<These questions may be best answered by Rip.>>

It's been many years since I belonged to a Minnesota investment club, so my experience is limited, but I'll give it a shot. Lynn can chime in and correct me if I am wrong.

1. Yes, just file the M3 header, along with a copy of the complete federal 1065, including federal K1s.

2. Since you deal with investment income, my belief is that non-MN residents do not owe any MN taxes and therefore, there should be no issues.

3. In line with my answer to 2., you don't have to file the KPI or KPC.

4. If the Canadian citizen has a federal tax ID, he can be a member.

Rip West
Saint Paul, MN

Lynn Ostrem on

Hi Rip,

Butch called me and my advice was to post his note to this list in search of YOU. <G> They filed for an LLC, so I wasn't sure if the M3, which I assumed was a "partnership" tax form was sufficiend for their type of entity. So thanks for responding. Happy tax day!

Lynn O.

On Mon, Apr 18, 2011 at 8:55 AM, Rip West <ripwest@comcast.net> wrote:

Hi Butch,

<<These questions may be best answered by Rip.>>

It's been many years since I belonged to a Minnesota investment club, so my experience is limited, but I'll give it a shot. Lynn can chime in and correct me if I am wrong.

1. Yes, just file the M3 header, along with a copy of the complete federal 1065, including federal K1s.

2. Since you deal with investment income, my belief is that non-MN residents do not owe any MN taxes and therefore, there should be no issues.

3. In line with my answer to 2., you don't have to file the KPI or KPC.

4. If the Canadian citizen has a federal tax ID, he can be a member.

Rip West
Saint Paul, MN

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