Yes, I understand M said if you are starting fresh but was wondering if it might be possible for us to change ours if it is better for our heirs. Didn’t know about the LLC when we incorporated.
A Sub-S Corp does not pay taxes. The income flows through to the shareholders of the corporation so I pay the taxes on my individual tax return. A C Corp pays taxes but not an S Corp.
Ohhh, I’m not familiar with that kind of Corporation. What is the purpose of that kind of Corp. just to shift liability or ???
Linda,
I think the key words are: If you are starting fresh.
Someone please correct me if I am wrong but if you have a corporation, your heirs inherit the stock of the corporation and nothing has to be filed in any of the counties where the corporation owns minerals. The corporation still owns the minerals. The only change is the ownership of the corporation.
P.S. to my previous post. I have a Sub-S Corp so the income flows through to the owners of the Sub-S. The corporation does not pay any taxes.
We have an S-corp. It has different rules than a C-Corp. The Trust must be designed very carefully to hold the assets of an S-corp. The S-corp holds title to our minerals so we never have to file any more heirship documents in each and every county for 30 people! In our case, the S-corp is the general partner to the LLC (Limited Liability Co.). All the bonus and royalty money go to the LLC-with appropriate documentation that the S corp owns title and the LLC owns beneficiary rights. All the money flows into the LLC. Then the LLC makes monthly distributions to the partners (all of us family members according to the number of shares that we each own). We then each pay our own personal taxes on the distributions. The shares in the LLC and S-corp are passed down to different generations, but it sure helps decrease the hassle of title issues at probate. We still had to have the assets appraised for Fair Market Value, but the estate value for the IRS was HIGHLY discounted since the S corp and the LLC are privately held and not on the NYSE so not easily marketable. Can’t escape the IRS totally, but you can sure decrease the tax bill if you have assets totaling over the new death tax limit. ($5.25MM this year per person-joint spouses 10.5MM) You do have to take into account any generation skipping tax exemptions, etc. in order to leave it tax fee. Talk to your attorney and CPA. They can walk you through it.
I agree with everything you said. Not all trusts can own shares of an S Corp so you have to have a knowledgeable attorney involved or you could end up invalidating not only the trust but also the S Corp. Thank you for your input.
It is quite confusing to the layperson. I just spent two hours with our attorney on Friday while he explained this whole setup.
Charter Oak made a deal to sell certain HBP rights to Continental in 4n-3w and 4n-4w .
Hello everyone. What’s the deal with Continental and their royalty payouts? I havea few acres in sec 20 the Lang well. But there’s not a cent coming back from it yet!
That’s why I’m tempted to sell 5 n.m.a. for $40, 000 . That’s $8, 000 an acre, up front cash! Wow, decisions, decisions… it sure would make a nice Christmas!!! Feliz Navidad…
Gregory, I think you should quit struggling with the wait and sell
My friend had an offer of $10,000/acre for her few acres. Think she is selling. Any others?
Oops, I am new at this, wrong story !!..she knows someone buying some acreage for $10,000 here. Seems like a lot…
Gregory, let me tell you a true story. When I was leasing in Northern Oklahoma for the Mississippi play I had a couple with 20 acres mineral interest. I normally won’t figure pay-outs for people, but I really needed this lease so I figured what they would make on a decent well. It was $8,000 a month. Their well DID come in at around where I figured their numbers. I have looked at what some of these wells in Grady have come in at and it is twice the bpd on what I quoted this couple. I personally would have to think awfully hard before selling. Just always keep in mind that this is a cycle and the boom will end, so put back your money for retirement because when it ends it will be so fast it will be like flipping a light switch.
Does anyone have knowledge of where Cactus Rig 155 has been moved to? It was drilling north into Sec. 28 3N/4W from north end of
Sec. 33 3N/4W
God told me “Hutch is going to get his share with or without Linda”! lol
In the Oklahoman today:
Sublette No. 1H-22 Well; of 22-3N4W, 509 barrels oil per day 2,375,000 cu-ft gas per day. Good Well especially that oil! That’s where they still have the flare burning. DCP needs to get after making more space for it it seems. I see even thought we’ve known the Sublettes for many many years I was still spelling their name without the “e”. I don’t discriminate with my type-o’s even with our friends! lol Sorry Guys and Gals!
http://cactusdrilling.com/rig-locator
Just found this. Zoom in on the map and touch the pin and it will tell you the rig. Don’t know how up to date, but interesting…