California
Here's my question:
If I have an ownership stake in a LLC, which in turn has an ownership stake in a general partnership, can I be an employee of the of the general partnership while at the same time being a manager of the GP on behalf of the LLC that has an ownership stake in the GP.
This question arises because the other potential partnership members wish to form a general partnership rather than a LLC to avoid paying the California taxes on the LLC revenue (would be $6800 annually). This makes me apprehensive because then personal assets are on the line, so I'm looking for a way to protect my personal assets while still taking part in the general partnership.
Alternatively, as the majority owner of the LLC that has an ownership stake in the GP, can I take compensation in the form of a salary on behalf of the LLC for work done as part of the GP?
Thanks for the advice.
Here's my question:
If I have an ownership stake in a LLC, which in turn has an ownership stake in a general partnership, can I be an employee of the of the general partnership while at the same time being a manager of the GP on behalf of the LLC that has an ownership stake in the GP.
This question arises because the other potential partnership members wish to form a general partnership rather than a LLC to avoid paying the California taxes on the LLC revenue (would be $6800 annually). This makes me apprehensive because then personal assets are on the line, so I'm looking for a way to protect my personal assets while still taking part in the general partnership.
Alternatively, as the majority owner of the LLC that has an ownership stake in the GP, can I take compensation in the form of a salary on behalf of the LLC for work done as part of the GP?
Thanks for the advice.