Timber investment management organization (TIMO)
Timber investment management organizations (TIMOs) are group forms of investment created to oversee the growth and production of timber and other forest products. TIMO's generally take the form of C-corporations, the traditional way that large businesses and investment groups are organized. TIMO's structured as C-corporations (C-corps), however, are at a direct tax disadvantage to other forms of land and business ownership, such as limited liability corporations (LLCs), S-corporations (S-corps), and especially real estate investment trusts (REITs). This is due to the fact that TIMOs and other C-corporations are subject to double taxation - profits are taxed once at the corporate level and again at the individual investor level (as taxes on shareholder dividends).
Terms, Definitions, and Concepts: Finance and Investment, Forestry and Silviculture, Real Estate, Timber Management
Added: Thu Sep 04 2008