Jim Branaum

My Feedback: (3)

as per instructions from on high

Hossfly

Well I must say, "Thanks, Jim, for this one."

While I am the club's corporate registered agent the state paperwork does go to the Treasurer.

Our Treasurer is also Treasurer for two other rather large charitable groups. When the topic first came up, he stated that the item was not applicable to our club.

I have forwarded your post to him and the other club officers for review.

Jim Branaum

My Feedback: (3)

removed

PLANE JIM

My Feedback: (109)

Would not being incorporated save you from the tax man?

abel_pranger

Or incorporating in Barbados?

Abel

Jim Branaum

My Feedback: (3)

Interesting questions. Surprising questions actually.

Incorporating provides some liability protection to the average club member by assigning it to the corporation. That transfer is worthwhile as it means each club member is not legally and financially completely responsible for the actions of every other club member, present or not.

Incorporating outside of your own home state costs lots of money. Barbados is a nice trick, but it comes at a cost and has other liabilities.

Hossfly

What in the "L" does that mean?

>>>>>>>>>>>>
DESCRIPTION: TX Franchise Tax: a business corporation tax. N/A

The Texas franchise tax is a privilege tax imposed on each corporation and limited liability company chartered/organized in Texas or doing business in Texas. For franchise tax purposes, the term "corporation" also includes a bank, state limited banking association, savings and loan association, limited liability company, professional limited liability company, a corporation that elects to be an S corporation for federal income tax purposes, and a professional corporation.


DESCRIPTION: Insurance Premium Tax (Independently Procured)

A tax is imposed on a policyholder domiciled or headquartered in Texas for policies of insurance that cover a risk located or performed in Texas that has been obtained through negotiations occurring entirely outside the state from an insurer not licensed in Texas.
<<<<<<<<<<

As far as we are concerned the negotiations happened right here in TX when we submitted the Charter Application.

At worst my club paid $30 plus $60 for one additionally insured. Annual tax bill is $4.37. With extreme diligence we just might be able to swing it.

Incidentally the form and tax is NOT NEW. Been there for a long time. We have forms dating back to '95, revised in '99 and again in 12/04.

For those with questions: 1-800-252-1387. Seems like JB's knees are jerking again.

abel_pranger

Hoss-

I hope you share your knowledge of pertinent tax code matters with D Holland, setting aside for the moment the good advice of Napoleon Bonaparte: "Never interrupt your enemy while he is making a mistake."
Gotta admit, I was surprised when Jim reported that the advice he got was a formula based directly on the number of members in the club (corporation). Appears that the interpretation of the TX tax code is that TX requires corporations to pay tax on insurance premiums paid by individual shareholders in the corporation for insurance purchased from a company not licensed to sell insurance in TX. Pretty novel, even amongst the more creative tax grabs. Lessee......I am a shareholder in a number of corporations based in various states/countries. I generally purchase stocks through Fidelity Investments, a MA corporation, and MA is not the state of any of my residences. I purchase HO and landlord's insurance from companies that I presume to be licensed in the states where the residences I maintain are located, but I haven't a clue if they are licensed in the states where the companies I am a shareholder in are incorporated.
Plan A: Ignore the *******s, let them catch me if they can. It will cost them more to compile my tax bill than they can possibly take outta my hide.

Abel

Hossfly

That's about the gist of it. I thought JB had found something new. First he spoke of a "Franchise Tax" which is strictly corporate. Then he changed tune to the Texas Annual Insurance Tax Report which is for all. I doubt if 1% of individuals has ever heard of it.

I buy (bought) an AMA Membership. AMA has an insurance policy basically to protect themselves all though the Certificate of Insurance, number R 387, issued by Westchester Surplus Lines Insurance Co., brokered by Harry Koch Co. of Omaha, NE states as Insured:
>>>
The Academy of Model Aeronautics, Inc. and/or Affiliated and/or Associated Chartered Clubs, Chapters, and Members thereof.
5161 E. Memorial Drive
Muncie, IN 47302-9252
<<<<

To me the insurance was all part of the grab-bag and I think a lot of others feel the same way.

My Club's officers are all ex businessmen of large corporations and high management, except the President who is retired AF/ANG and retired Airline. (World Championship competitor in FAI)
The Treasurer is also Treasurer for two large Christian organizations, each 501 (c) (3), and an ex fighter pilot -- short termer.
The Sec. was upper management in a Corporate Public relations. Rather shy until he gets on a podium and then he becomes a fire-breathing monster.

I kind of take their advice. [8D] Our club is so very lucky and blessed with talent.

edit: screwed up the quote code.[]

Jim Branaum

My Feedback: (3)

Abel,
Before you believe what Horrible has said, you might do well to think a little. Or not, as you see fit.

If not, the you had better bend knee to Horrace the Horrible because he knows better than anyone in the entire AMA about everything there is to worry about. His business knowledge is so very great that he is clearly the richest person around. Heck, he is so very smart that he can even represent you in legal matters as he is pretending to do for the AMA.

Horrace the Horrible, what you and others feel has little to do with what your elected representatives have decided you and others will give the state. Haven't you figured that out yet? I thought you were supposed to be smart, guess I was wrong again.

Hossfly

I asked you what your editing all your info out meant. You can't even answer that.
Heck Jim, the unlettered, I may be only one step smarter than you so again, I'm SECOND to YOU in the order of the dumbest dummies in the world. [>:]

Jim Branaum

My Feedback: (3)

Horrace the Horrible, READ it again and engage your brain. THINK man, think.

Roby

Looks like Texas sure has a few tough neighborhoods.