In re LLCs, it is common for owners, or members, to take as little as possible in salaries to minimize taxes. By taking their income as distributions rather than salary, the company does not have to pay payroll taxes on the payments and the owner gets taxed at the dividend rate as opposed to the regular income rate.
What is more interesting, however, is that according to Maryland’s corporate records, Mr. Frost’s LLC, “Diversified Industrial Design Center, LLC” had its charter forfieted in 2001 for failure to file its property tax return. In fact, no returns have been filed since then. Therefore, the Frost’s LLC is not a validly existing, legal entity.
See for yourself at http://sdatcert3.resiusa.org/UCC-Charter/CharterSearch_f.aspx
This potentially means - and there is more work to be done before anything can be certain - that Frost is managing his income and taxes as if he were an LLC without legally being able to do so.
It is still entirely possible that Frost is just a bad businessman and essentially works for free and, out of pride, refuses to sell his portfolio of properties.
Same result if you search Frostworks.
BTW, according to your tagline - (If guns kill people, can I blame misspelled words on my keyboard?) - I have to inform you that as a keyboard owner, you forfeited that right when you bought it. :)
Excellent find and I commend you. I also was looking for the LLC docs but couldn't find them.
So he's owned an industrial property for 8 years, doesn't pay taxes on it, has no legal business entity, and presumably doesn't have a valid Balitimore business license.
So what is his business, and where is it conducted?
(BTW, I'd like to see his S-CHIP docs to see whether he calimed employment by the defunct LLC)
Now, that is interesting! The Frost’s may have opened a can of worms they wish they hadn’t!
WHAT??? Frost’s LLC is not LEGAL???? IRS...call your office!!! Tax Evasion ALERT!!