Tag Archives: Swart.Enterprises

Jolly Good News on the Swart Front

Posted on September 10, 2019 by Russ

Let’s say you’re the managing member of an LLC headquartered in Seattle (duly registered as an LLC in Washington State). You invest in another LLC (a Delaware LLC) that invests in property throughout the United States. You own between one … Continue reading →

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Arizona vs. California Franchise Tax Board

Posted on June 10, 2019 by Russ

Legal authorities in the Grand Canyon State are not amused by California’s view that indirect interests in California LLCs mean that the entities are doing business in California. And they’re mad enough to take action, asking leave to sue California … Continue reading →

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Swart Broadens

Posted on November 29, 2018 by Russ

California’s Franchise Tax Board believes that any business with even a remote tie to California should pay California tax. Let’s say you own a 0.21% interest in Acme LLC. Acme invests in something in California. You have no authority to … Continue reading →

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FTB Not Appealing Swart Decision

Posted on February 22, 2017 by Russ

Last month a California appellate court ruled that California’s Franchise Tax Board was wrong in trying to assess an Iowa corporation with a 0.2% ownership in an LLC that invested in California the California minimum Franchise Tax. It was announced … Continue reading →

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Swart Wins Appeal; Not Liable for California Minimum Tax

Posted on January 12, 2017 by Russ

Good news for non-California businesses that are passive investors in an investment that invests in a California entity. The Franchise Tax Board (California’s income tax agency) has been ruling that business entities that have no active business in California but … Continue reading →

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California Goes After Flow-Throughs with Passive Investments in California

Posted on August 17, 2013 by Russ

Let’s say you’re the manager of a business in Florida. Your business has some excess capital, so you decide to invest in the RussFox Fund, LLC. Your investment makes up a whopping 0.02% of the fund. (Put another way, you … Continue reading →

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