My partner, XXXXX XXXXX, and I , Gary Oakley, own 2 LLCs: Monument Plaza llc and Sundance Mountain Lodge llc, in equal proportions: Gary owns 80%; jim 20%.
Monument Plaza llc bought the property in 2006 from a Dr. Hai Bui, who carries a note for $1.8m still. Monument plaza pays him $7,600/month interest.
In 2008 Monument Plaza llc leased the property to Sundance Mountain Lodge llc.
Sundance Mountain Lodge llc has been operating since then.
Several 941 taxes were not paid over the past few years, totaling close to $180,000.
IRS is pressuring to pay, but Sundance MountainLodge has no money. IT can barely make current 941's. SML has been negotiating a settlement agreement to pay it off over a few years.
IRS has put levy on SML, but has not shut them down; actually, if they shut SML down there are very few assets to get: used furniture, tv's but not much more.
Ideal situation: keep them off my back to stay open long enough to sell. If business is open it can likely be sold for $2.5-3M. this would pay back IRS and Dr. Bui.
Another option is to lease to another hotelier.
What is best way to keep them off me:
chapter 11 is an option but I have a few questions:
1) would it impede ability to book events or groups at hotel if it is public.
2) How "public" is chapter 11?
3)would it make my sale price go down if buyer knows it is in chapter 11?
4)If chapter 11 is filed and the property then sold or leased does the chapter 11 go away once creditors are paid?
5) Does chapter 11 have to go through to fruition? I have heard it cannot be stopped once started so it cant be used as a stopgap measure…And does that get expensive?
Settlement Agreement is another option to keep them off me for a while:
1)if an agreement is signed it must be paid back with sale or lease corrcct? This would impede ability to lease?
2)can I sign a settlement agreement for just a few months while it sells?
Sale or Lease
1)Monument Plaza llc leases to another company conceivably the taxes would go away if SML closes. Correct?
2)would such a lease be suspiscious because SML and MP are owned by same people, in same proportions? Would IRS fight that and go after MP?