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Permalink Reply by jerry smith on January 3, 2010 at 4:41

you need to start a trust a count to avoid capital gains tax is the smartest thing to do. LLC all that is starting a company to right off loses which you can do if you move it around in the oil business to off set the income from the wells.

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Permalink Reply by Crunchy on January 3, 2010 at 5:22

In the state that I am in or in Louisiana?

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Permalink Reply by Mac Davis on January 3, 2010 at 17:37

A LA lawyer would definitely need to be involved. LA law is different from a lot of states due to the French heritage. You might do most of your dealing with someone in your home state.

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Permalink Reply by The_Baron on January 5, 2010 at 4:14

You need an attourney knowledgable in buisness law.

The type of entity that serves you best will depend on your individual circumstances. LLCs are popular because they are easy to form and maintain. If you form an LLc in another State, you will still need to file as a foreign corporation in LA. As I said above, a good attourney can advise you on the pros and cons.

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Permalink Reply by Crunchy on January 5, 2010 at 4:52

Anytime that I mention the property is in LA lawyers here pucker up. I think I will get someone in LA to handle it. I used someone for contracts, but hadn't talked about the LLC.

Thanks for your responses so far. Anyone else want to contribute feel free!

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Permalink Reply by The_Baron on January 7, 2010 at 10:03

It is important to note that Louisiana law is a different than the rest of the country.

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Permalink Reply by drilltheshale on January 5, 2010 at 7:57

We placed our land (which was owned jointly with our mother) into an LLC in combination with a trust. This was partly for medicaid recovery issues, but could help with inheritance tax. It also helps to protect the surface property and future royalties from lawsuits filed against an individual partner. Pretty complex for us amateurs--we used a attorney who also is a CPA (and an elder law specialist). In our opinion, he did a good job and explained the process well.

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Permalink Reply by Crunchy on January 5, 2010 at 10:13

Drilltheshale, Was your attorney in LA? If so can you give a referral?

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Permalink Reply by drilltheshale on January 5, 2010 at 11:33

Yes, his firm is in Shreveport. I sent you a friend request so that I can PM you. David has a point. Although you need Louisiana expertise in O&G law and setting up a Louisiana LLC, your own state surely has its distinct law on inheritance, state taxes, etc, although federal inheritance and other federal tax issues are of course universal. These elder law specialists seem to know each other so he might be able to locate someone in your state as well to assist you.

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Permalink Reply by Crunchy on January 5, 2010 at 14:28

Wow this gets more and more complex. There is more than one owner in more than one state. I think I will start in LA and work my way back to my home state. I have to start somewhere. I think we definitely need to set up an llc and probably a trust. I will have to call a few attorneys for consults.
Thanks.

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Permalink Reply by Ron Jon on January 7, 2010 at 5:49

Crunchy, I'd use your local CPA in conjunction with a LA Attorney who focuses on Estate Planning and Tax.

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Permalink Reply by David on January 5, 2010 at 8:11

The advice you got from The Baron and Mac Davis is spot on. Louisiana law is different than the other 49 states, as Louisiana law is based on civil law while the other 49 are common law states.

I would strongly suggest you get a competent O&G attorney in Louisiana, preferably one who has been in practice in that area for a good while. And get referrals.

The main thing you need to do is sit down with your estate planning attorney - where you live now - and go over your goals and objectives. They are what will determine the structure which best fits your goals.

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