We are an online club and are looking for a list of states
where we would be required to file a partnership return.
The real issue is in our search for new members, are there
states we want to avoid.
We registered our club in Washington state, where we have a
member, so that should be our place of business.
Mark Eckman
iras1 on
I'm not sure that anyone has ever compiled such a list. However, I know that NY, NJ and PA all require filing if one of the partners is a resident of those states.
In a message dated 04/20/11 23:31:51 Eastern Daylight Time, mark2459@gmail.com writes:
We are an online club and are looking for a list of states where we would be required to file a partnership return. The real issue is in our search for new members, are there states we want to avoid.
We registered our club in Washington state, where we have a member, so that should be our place of business.
Laurie Frederiksen on
Dear Mark,
A general partnership may need to file within the state in which it is organized but most states do not require a return just because you have a partner who resides there.
I think in general states are most concerned that everyone pay whatever taxes they require on business income produced by businesses operating within the state. Investment clubs do not usually receive income that they would be concerned about unless you have purchased something like a Master Limited Partnership or Publicly traded partnership. In general, clubs probably have more to worry about with state filing requirements if they own those than if they have non resident members in their club. That is one of the reasons why we recommend to you not to invest in them.
Since club income is reported on each members federal return, it will probably be picked up when members file individual returns in their state of residence. Their state will get their share that way.
Of course, it doesn't hurt to check specifically with your state if you want a final answer. There are so many different tax situations it's difficult to give blanket answers that will cover all situations. We are glad to try and help with specific questions or at least point you in the right direction to get answers if you email us at support@bivio.com
-- Laurie Frederiksen Invest with your friends! www.bivio.com
New Mexico Does NOT require a partnership return for
investment clubs.
At 09:31 PM 4/20/2011, you wrote:
We are an online club and are
looking for a list of states
where we would be required to file a partnership return.
Cherilyn J. Peay
PO Box 1408
Bernalillo, NM 87004-1408
(505) 867-4379
(505) 867-4224 fax
Roy Chastain on
Mark, I was hoping someone from California with the knowledge on this subject would have responded. Knowing California, it probably does, but I would hope not. To be sure, contact the CA Franchise Tax Board. The website is "ftb.ca.gov."
Good luck,
Roy Chastain
"Good judgment comes from experience, and a lot of that comes from bad judgment."
Will Rogers
--- On Thu, 4/21/11, Laurie Frederiksen <laurie@bivio.biz> wrote:
From: Laurie Frederiksen <laurie@bivio.biz> Subject: Re: [club_cafe] State Partnership Tax returns To: club_cafe@bivio.com Date: Thursday, April 21, 2011, 8:01 AM
Dear Mark,
A general partnership may need to file within the state in which it is organized but most states do not require a return just because you
have a partner who resides there.
I think in general states are most concerned that everyone pay whatever taxes they require on business income produced by businesses operating within the state. Investment clubs do not usually receive income that they would be concerned about unless you have purchased something like a Master Limited Partnership or Publicly traded partnership. In general, clubs probably have more to worry about with state filing requirements if they own those than if they have non resident members in their club. That is one of the reasons why we recommend to you not to invest in them.
Since club income is reported on each members federal return, it will probably be picked up when members file individual returns in their state of residence. Their state will get their share that way.
Of course, it doesn't hurt to check specifically with your state if you want a final answer. There are so many different tax situations it's difficult to give blanket answers that will cover all situations. We are glad to try and help with specific questions or at least point you in the right direction to get answers if you email us at support@bivio.com
Laurie Frederiksen on
On Thu, Apr 21, 2011 at 11:57 AM, Roy Chastain <e4roy@yahoo.com> wrote:
Mark, I was hoping someone from California with the knowledge on this subject would have responded.
I actually called them this morning to ask them this question and they said no.
-- Laurie Frederiksen Invest with your friends! www.bivio.com
Cool! Thanks. (A tad surprising, given the regulatory mentality of this state, my former employer.)
Roy Chastain
"Good judgment comes from experience, and a lot of that comes from bad judgment."
Will Rogers
--- On Thu, 4/21/11, Laurie Frederiksen <laurie@bivio.biz> wrote:
From: Laurie Frederiksen <laurie@bivio.biz> Subject: Re: [club_cafe] State Partnership Tax returns To: club_cafe@bivio.com Date: Thursday, April 21, 2011, 9:54 AM
On Thu, Apr 21, 2011 at 11:57 AM, Roy Chastain <e4roy@yahoo.com> wrote:
Mark, I was hoping someone from California with the knowledge on this subject would have responded.
I actually called them this morning to ask them this question and they said no.
-- Laurie Frederiksen Invest with your friends! www.bivio.com
I am the treasurer of an online club based in California. We have members in Wisconsin and Arizona but have not had any issues for those states. A list will be a great benefit for some clubs.
John Rice
From: iras1 <iras1@aol.com> To: club_cafe@bivio.com Sent: Wed, April 20, 2011 8:45:51 PM Subject: Re: [club_cafe] State Partnership Tax returns
I'm not sure that anyone has ever compiled such a list. However, I know that NY, NJ and PA all require filing if one of the partners is a resident of those states.
In a message dated 04/20/11 23:31:51 Eastern Daylight Time, mark2459@gmail.com writes:
We are an online club and are looking for a list of states where we would be required to file a partnership return. The real issue is in our search for new members, are there states we want to avoid.
We registered our club in Washington state, where we have a member, so that should be our place of business.