On July 1, 2013, a Certificate of Conversion was filed with the State of Delaware to convert Baker Bros. Advisors, LLC from a limited liability company into a limited partnership named Baker Bros. Advisors LP (the "Adviser"), with Baker Bros. Advisors (GP) LLC (the "Adviser GP") as the Adviser's sole general partner. As the Adviser previously reported on its Form 4 filed on June 11, 2013, the Adviser and, collectively, therefore, its general partner have voting and dispositive power over securities held by its clients Baker Brothers Life Sciences, L.P., 14159, L.P., 667, L.P., Baker Bros. Investments II, L.P., Baker Bros. Investments, L.P., and Baker Tisch Investments, L.P. (the "Funds"), but neither the Adviser nor the Adviser GP have a pecuniary interest in such securities, as the Adviser may only receive a portion of the asset-based management fee. Julian C. Baker and Felix J. Baker each may be deemed to control the Adviser GP. For purposes of Section 16 of the Securities Exchange Act of 1934, as amended, Baker Bros. Advisors (GP) LLC is deemed a director by deputization by virtue of its representation on the Board of Directors of Genomic Health, Inc.
No securities are beneficially owned.
I think converting from a LLC to a partnership would mean that the profit on trading would be taxed once, at the partner level instead of twice at the corporation and then the individual levels. Anybody know if that is the reason you would do this and what are the implications?