Texas Club Tax Revisited
04-29-2005, 02:43 AM
#1
Thread Starter
Texas Club Tax Revisited
Jetero RC Club, Inc. Officers recently reviewed, along with Texas Corporate Franchise Tax People, the question of the Insurance Franchise Tax that was recently discussed herein.
The tax is to assist in safeguarding those organizations that have obtained insurance outside the state and those insurance companies fail to sustain any claim.
The Club's membership is not in the question. The Republic waived all previous year's taxes, interest and penalties concerning the insurance purchased to cover the mortgage holder's Trust account (relate to site-owner). Such insurance being purchased from an out-of-state entity not licensed to do insurance business in TX. However the Club did pay an amount of $2.91 for the $60 premium paid for the policy purchased during this 2005 tax year.
Therefore may I suggest that any TX Incorporated Club will most likely NOT go insolvent if it does decide to get its books in order.
The tax is to assist in safeguarding those organizations that have obtained insurance outside the state and those insurance companies fail to sustain any claim.
The Club's membership is not in the question. The Republic waived all previous year's taxes, interest and penalties concerning the insurance purchased to cover the mortgage holder's Trust account (relate to site-owner). Such insurance being purchased from an out-of-state entity not licensed to do insurance business in TX. However the Club did pay an amount of $2.91 for the $60 premium paid for the policy purchased during this 2005 tax year.
Therefore may I suggest that any TX Incorporated Club will most likely NOT go insolvent if it does decide to get its books in order.
04-29-2005, 08:26 AM
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RE: Texas Club Tax Revisited
Just curious if the club is a non-profit organization, why, would or did the club get incorporated.
I would think a non profit club would have little liability unless they owned some real estate.
I would think a non profit club would have little liability unless they owned some real estate.
04-29-2005, 10:53 AM
#3
Thread Starter
RE: Texas Club Tax Revisited
ORIGINAL: Super D
Just curious if the club is a non-profit organization, why, would or did the club get incorporated.
I would think a non profit club would have little liability unless they owned some real estate.
Just curious if the club is a non-profit organization, why, would or did the club get incorporated.
I would think a non profit club would have little liability unless they owned some real estate.
Clubs get incorporated for reasons that THEY choose. In the real world, the corporation is a separate entity. Incorporation removes the personal liability of the corporate officers and members, however the corporation can be penetrated when the courts so deem. Example:Enron!!
Jetero RC Inc. is IRC 501 (c) (7) established by a CPA and Insurance Broker, currently a member, and an attorney, then a member, but now deceased due to an accident. In addition, Jetero does own real estate and the facilities thereon.
All that has absolutely nothing to do with the thread subject, however I do hope your curiosity and understanding have been enhanced.
04-29-2005, 03:57 PM
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RE: Texas Club Tax Revisited
A corporation, either for profit or non-profit is a legal person. Members of the corporation are only liable up to the extent of the assets of the corporation. If the club is sued for actions of the members the only cost is the limit of its assets.
