Canadians investing in United States #5
Author: Financial Awakening Blog
If you still haven’t read Tips for Canadians investing in rental properties in United States, I highly recommend you to read it first.
I got quite a few message regarding how to choose between LLC and LLP. I decided to add a post regarding this to answer all the questions at once.
Both LLC and LLP are business structures in the United States. They both provide liability to an extend, but in a different way.
Here is a table listed the highlight of LLC and LLP.
|formed by people who want to put some money together to have a business running||formed by mostly professionals, such as doctor, lawyer|
|can be run by either members or elected officials||run by partners|
|can be taxed either like partnership or like corporation||taxed like partnership|
|protect personal assets against lawsuits against the company||protect partners from mistake of another partner|
For the sake of real estate holding and operating, we should choose LLC instead of LLP. Remember, LLC can be formed with only one member or more. Do not confuse LLC with multiple members with LLP.
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Read more: Tips for Canadians investing in rental properties in United States | Financial Awakening Blog – Real Estate Passive Income http://financialawaken.com/2012/03/tips-for-canadians-investing-in-rental-properties-in-united-states/#ixzz24I1pB3Y9
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