LLC vs LLP in United States

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.

LLC 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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If you are interested in getting effortless passive income, feel free to visit Reliable Property Management Toronto. They will be able to help you.

 

If you like this topic, you would also like reading

Tips for Canadians investing in rental properties in United  States

How to form a Limited Liability Company LLC part 1

LLC – Articles of Organization

LLC – Operating Agreement

 

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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About albert

I am an investor that want to achieve financial independent by the time when I retire. I plan to achieve this goal by planting more passive income sources. One of the easiest and best know passive income is through real properties. It is an art to create a portfolio to achieve this goal. I will share my thoughts and findings so that more people will be able to benefit from it. You will learn more about financial planning, retirement planning and how to earn more passive income. You will experience financial awakening which will change your life forever. Please feel free to comment and add your thoughts and findings to share. You can subscribe my RSS feed, and visit my facebook fanpage. Enjoy. Don't forget to like my page. I hope all of you will experience Financial Awakening and start planning.
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One Response to LLC vs LLP in United States

  1. moinur rahman says:

    This is an interesting post,
    thanks for your details. I enjoyed this site.

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