Posted by William Bronchick on April 11, 2004 at 12:34:35:
I think you mean LP (limited partnership) not LLP (limited liability partnership). The general partner of the LP is generally a corp or LLC to protect the GP from liability.
The LP and LLC basically provide the same protection for the owners from liability and asset protection. The land trust is just another layer for privacy to “muddy” the waters and make it more difficult for potential litigants to unravel the maze. The LP vs. LLC decision is a function of state franchise tax laws. In CA, TX and a few other states, it is more cost effective to use LPs vs. LLCs.
LLC/Land Trust or LLC/LLP - Posted by Jared Pomranky
Posted by Jared Pomranky on April 09, 2004 at 05:41:50:
I have been researching different ways to limit my liability in holding my rental properties. I see the benefits of holding properties in a land trust with the LLC as the beneficiary but I’ve also been looking at holding my properties in a LLP with the LLC as the general partner. I guess this would put me as the limited partner??, making me not liable.
I can see that the land trust makes you less public but wouldn’t the LLP also make me less public? I’m riding the fence here and would like to purchase one of your programs to help in the creation of my LLC or LLC/LLP either way so I can do this myself. Do you have any comments on the LLC/LLP?