Washington State - What's your preferred partnership setup?

[Wes S.]

Investors of Washington State! How do you prefer to setup partnerships for your investments -- is it through an LLC, LP, or something completely different? Are there some unique state laws and regs that make one kind preferable to another?

[Steve Vaughan]

We have an LLC with all my family as the members since WA has no age minimums for members.

Because our 2 boys can own 2% each, it keeps my wife and I from owning 50% each safely.  

If you sell less than 50% in any calendar year - no excise tax.  

We are set up to sell our commercial LLC properties excise tax-free if done right.

LLC membership also educates kids about business ownership. My 12 year old has owned apt buildings since he was 1 week old. Their k-1 income flows directly into mutual funds, teaching them about investing. I've been able to pull them out of school to go to closings. Pretty cool!