"Casey Wilson" wrote in message . ..
"Robert M. Gary" wrote in message
om...
I have my airplane registered in a "Mutual Benefit Corp" in the state
of California. Every year I get a nastygram from the state saying I
need to fill out some soft of tax return. They also say I'll have to
pay a percentage fine for being late (which I assume is zero since the
corp doesn't make any money, its just a holding corp for me). If
anyone else uses this set up, what FTB form to you submit?
-Robert

Hi Robert,

I'm no expert, nor am I qualified to give any tax or legal advice. You can
find the information you require he
http://www.leginfo.ca.gov/calaw.html
The California Secretary of State or the state Attorney General's office
would be glad to explain it all to you.

Look at the Corporations Code and the Revenue and Taxation Code. I think
you will find that if the corporation is registered in California and does
not meet the federal description of a nonprofit corporation under the rules
of 501(c)(3) it is liable for a minimum taxation. I'm not sure what the
number is today, but it was $800. Note there is a distinct difference
between a nonprofit and not-for-profit corporation.

I'm pretty sure the codes apply even if the corporation breaks even or shows
a net loss during the taxable period. You might also find that any assets
owned by the nonprofit corporation are subject to a property tax in either
the county where the property is held or the county of record of the
corporation.

That's one of the reasons I incorportated as a Mutual Benefit vs. a
for profit company (remember that not for profit != charity ).