- Jurisdiction
- California
Hi, I have a corporation in California, where I am based. I opened this corporation in 2018 specifically to hold a 4.5% shares of a company I helped start in Norway.
Since I was just going to be a silent partner and the company founded in Norway would eventually move a lot of money I did not want to be liable for any loans or other risks they might take over time.
So obviously my corporation in California does not do anything other than pay $800 minimum franchise tax to the CA Franchise Board, and send in the yearly returns to the CA Franchise Board and the IRS.
By 2023 the company in Norway is indeed moving big money, as was expected, but not making a profit. I expect it will continue to have some big debts until after it goes IPO, which might be in 10 years or more. All this was as expected so nothing weird there.
I'm just wondering if anyone could suggest a way for me to continue to hold that 4.5% ownership and stay protected from liability but not have to pay those $800 every year while doing no business whatsoever and no expectation of ever doing business with this company?
Any suggestions appreciated, thanks.
Since I was just going to be a silent partner and the company founded in Norway would eventually move a lot of money I did not want to be liable for any loans or other risks they might take over time.
So obviously my corporation in California does not do anything other than pay $800 minimum franchise tax to the CA Franchise Board, and send in the yearly returns to the CA Franchise Board and the IRS.
By 2023 the company in Norway is indeed moving big money, as was expected, but not making a profit. I expect it will continue to have some big debts until after it goes IPO, which might be in 10 years or more. All this was as expected so nothing weird there.
I'm just wondering if anyone could suggest a way for me to continue to hold that 4.5% ownership and stay protected from liability but not have to pay those $800 every year while doing no business whatsoever and no expectation of ever doing business with this company?
Any suggestions appreciated, thanks.