Anyone want to invest in a ruby mine in Western NC?

[pstall]

i think your better move is to go with an LLC. Better tax advantages, flexible biz plan and better ability to depreciate equipment used on said property.

Let the General Partner(dont look at me) run the show, spread out the wins and losses evenly to the investors. Have pass thru income to each accordingly.

The real estate agent sees commission and is a short term thinker. Yeah I know. I have never met them. Show me someone who gets commission who is a long view thinker? thank you

Maybe you could even double up with the equipment and do a lease back to the county and get a double tax break. Boom.

That's off the top of my head.

[charlotte49er]

i think your better move is to go with an LLC. Better tax advantages, flexible biz plan and better ability to depreciate equipment used on said property.

Let the General Partner(dont look at me) run the show, spread out the wins and losses evenly to the investors. Have pass thru income to each accordingly.

The real estate agent sees commission and is a short term thinker. Yeah I know. I have never met them. Show me someone who gets commission who is a long view thinker? thank you

Maybe you could even double up with the equipment and do a lease back to the county and get a double tax break. Boom.

That's off the top of my head.

You like an LLC over a S or C Corp? Granted any Corporation is better than none. IRS gets real picky on co-mingling funds, not to mention a Corp can give you perks and you not pay for it. Then there's the whole liability issue.

Al lot of my former fellow real estate agents incorporated for ther every reason. (Real estate agents have to carry liability insurance like a Doctor does. And God forbid that you would have an accident while you have a client in your car! It's a lot less headaches if your car is owned by the Corporation.

I do know that you don't want to buy any major equipment. Corp Lease is much more favorable tax wise and you can upgrade more often. (At least it used to be, not sure of the tax laws now.)

[SCP]

Shouldn't you be writing a prospectus, not a perspectus? Or is a perspectus a mining term? Just curious.

[pstall]

Chances are your real estate agents are viewing this only as a land deal and maybe selling lots down the road. I'm willing to bet they do not have their Series 22 license which is for DPP(Direct Partnership Programs, ideal for LLC's)

http://www.investopedia.com/articles/pf/07/land_speculation.asp#12907892785842&close

Breaks down the dif between LLC and S Corp as it relates to real estate.

http://www.llcsexplained.com/llcsexplained-scorporations.htm

If an llc holds real estate or other passive investments, an S corporation or C corporation is usually a very poor choice since the corporation may create an extra level of taxation.

Depending on whether or not you or your group buys equipment, the LLC is something to look at per the quoted above.

More details of what a DPP is.

http://thismatter.com/money/funds/dpp/dpp-evaluation.htm

By no means am I saying that is the only way to go, but to consider it when looking long term.

You might want to bring some folks who have done DPP's and your real esate buddies to the table and see what would be most beneficial to you.

Good luck no matter what you do.

[charlotte49er]

Shouldn't you be writing a prospectus, not a perspectus? Or is a perspectus a mining term? Just curious.

You're right. Thanks for the correction. :blush2: I would hate to spend all the time and put it together only to mis-spellit. (Thank God for Spell Check!)

[charlotte49er]

Chances are your real estate agents are viewing this only as a land deal and maybe selling lots down the road. I'm willing to bet they do not have their Series 22 license which is for DPP(Direct Partnership Programs, ideal for LLC's)

http://www.investopedia.com/articles/pf/07/land_speculation.asp#12907892785842&close

Breaks down the dif between LLC and S Corp as it relates to real estate.

http://www.llcsexplained.com/llcsexplained-scorporations.htm

Depending on whether or not you or your group buys equipment, the LLC is something to look at per the quoted above.

More details of what a DPP is.

http://thismatter.com/money/funds/dpp/dpp-evaluation.htm

By no means am I saying that is the only way to go, but to consider it when looking long term.

You might want to bring some folks who have done DPP's and your real esate buddies to the table and see what would be most beneficial to you.

Good luck no matter what you do.

When it comes to incorporating, is a mystery to me. I did it years ago when I had the race team, but I think the lawyer who did it was an idiot!

Seems like an LLC is the way to go.

Thanks, ST

[CatsMeow]

I found a great source for rubies, too...

www.tiffany.com

[Skew]

I found a great source for rubies, too...

www.tiffany.com

You're gonna have to make a lot of sammiches to shop there.

Try this place: http://www.cmijewelry.com/home.php

Better quality and less expensive. That way my friend and I can go sailing this summer.