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Limited Partnership Renewal



Nancy told me about the letter from the state of Virginia indicating
that we needed to pay the fee of $50 to remain registered as a limited
partnership.  I told her I could call my friend/lawyer and ask him about
this and save her the effort of looking up the answer elsewhere.

The short answer is pay the money.  He listed a number of reason for
paying, not least amoung them was the fact that if we are not registered 
as a limited partnership then we could be held individually accountable
for the actions of the club.

He also said that the Tax ID we are currently using would not be valid
since we are no longer a limited partnership.  When we file our taxes,
income derrived from the partnership would be recorded using the invalid
Tax ID and could provoke nasty things like audits if the IRS or the VDT
caught it.  He said the chance of them catching it is small but, to use
his words: "why take the chance for 5 or 6 bucks a piece, God you guys
are really cheap."  I told him I thought we would pay the money.

While I had him on the phone I asked if there was any other advice he
would like to share with me about limited partnerships.  He said that
the best way to avoid trouble is to put the clubs charter/rules in
writing and get everyones signature on it when they join the club. 
Notorizing is not necessary, but it is a good idea to have a couple
people witness the signing.  He also said if possible try to get what
they sign to fit on a single page or have them sign/initial each page.  
This kind of paper work helps protect the club in the event one of the
members brings suit against the partnership.

If we want any other free advice let me know since I think he will be
going to dinner with me and a couple friends next week.