Discussion:LLP'S BENEFITS

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> LLP'S BENEFITS


Kenk (talk|edits) said:

22 August 2006
Anybody have input on when Limited Liabiblity Parterships are more benficial than LLC's, SUB S, or corporations?

Taxperson (talk|edits) said:

22 August 2006
Depends on the state in which you are practicing. For example, in California, only CPA's, attorneys, and architects may practice under an LLP, and professional services may not be conducted under an LLC at all.

BottomLine (talk|edits) said:

24 August 2006
Spoke with an attorney in Florida a couple of weeks ago. He's putting almost all his new clients in LLP's. According to him since an LLP is a partnership and has no stock it is protected from claims. That is - if you are sued as a stockholder (C-Corp, S-Corp, LLC), the plantiff can receive your stock as compensation forcing you to go into business with someone you don't want to be in business with. With an LLP, you're protected by the partnership status. Apparently in Florida you cannot be forced to go into partnership with someone you don't want to be in partnership with. Additionally, if they do get an interest in the partnership, you can make them pay taxes on the profit of the partnership without distributing any cash. (Who wants to pay taxes on money you didn't receive?)

Of course I am paraphrasing and am not an attorney. But he says there is case law in Florida to support this.

Riley2 (talk|edits) said:

25 August 2006
Bottomline, I believe that the charging order rules to which you are referring also apply to LLC's in most states (including Florida).

To join in on this discussion, you must first log in.
Personal tools