PDA

View Full Version : LLP, LLC, or what?



twins0203
05-09-2006, 06:02 PM
I'm looking for some advice on what would be best for our situation.

I'll first explain the details.

I am a partner with two other guys that are developing a network of websites. One of the guys lives in Minnesota, and me and the other live in Georgia. Right now, all revenue is sent to me directly, in my name and my SSN. Since we are just starting off, we'd like to go ahead and get the income that our network is making off of me personally, and into a company to allow us to expand and grow into a much larger network. This way, we would then each pay our own individual taxes once the network pays us.

We have heard that an LLP would be good for what we plan on setting up because it allows us to each be equal partners, and we could set it up with all the what-ifs, like if one of us die, want out of the partnership, or whatnot.

Should we go for the LLP, or an LLC, or would another type be more beneficial?

Would it be more beneficial to register the company in Georgia, as opposed to Minnesota? And Vice Versa?

Thank you!

bizguy
05-12-2006, 07:18 PM
Hi twins,

On the surface, an LLP sounds right for what you describe. Below the surface, get the advise of one CPA who can help with both the Georgia and Minnesota LL company rules.

8)

CSomm
02-13-2014, 08:55 AM
More than anything else, you need to talk to a CPA. Advice like this on the internet is not the kind that you need; you need someone who is going to follow your business account, and the best person to help you make this decision is the person who will deal with the taxable business ramifications down the line. There are lots of pitfalls when it comes to LLP vs LLC, and I encourage you to talk it out with someone you can contract and retain.

Donstick
04-23-2014, 04:44 AM
I'm looking for some advice on what would be best for our situation.

I'll first explain the details.

I am a partner with two other guys that are developing a network of websites. One of the guys lives in Minnesota, and me and the other live in Georgia. Right now, all revenue is sent to me directly, in my name and my SSN. Since we are just starting off, we'd like to go ahead and get the income that our network is making off of me personally, and into a company to allow us to expand and grow into a much larger network. This way, we would then each pay our own individual taxes once the network pays us.

We have heard that an LLP would be good for what we plan on setting up because it allows us to each be equal partners, and we could set it up with all the what-ifs, like if one of us die, want out of the partnership, or whatnot.

Should we go for the LLP, or an LLC, or would another type be more beneficial?

Would it be more beneficial to register the company in Georgia, as opposed to Minnesota? And Vice Versa?

Thank you!

Hi, could you, please, give me an update? What option did you choose finally?I am in the similar situation and your advice would be welcome!Thank you!

MichaelXH
05-25-2015, 05:57 PM
I agree that it would be helpful to consult a CPA, but from the info I see here about the business in question, I would strongly encourage an LLC. As far as business structures go, LLC's are fairly flexible for tax and other purposes. That said, you can always start as a partnership and switch to an LLC down the road if circumstances change.

Daniel Jameson
05-24-2018, 01:24 AM
LLP: An LLP is a general partnership formed by two or more owners – referred to as partners – and the LLP definition is similar to that of an LLC. It is a cross between a corporation and a partnership, and the partners enjoy some limited personal liability. Professional businesses are commonly organized as an LLP.

LLC: Forming an LLC limits the members’ (or owners’) personal liability for business actions. Members are liable, but usually only to the extent of their investment in the business. This means that member’s/owner’s personal assets cannot be used for settling business debts. This differs from a regular partnership, where all members or at least one is liable for company debts.

ruhiangel
11-13-2019, 03:03 AM
An LLP is a general partnership formed by two or more owners – referred to as partners – and the LLP definition is similar to that of an LLC. It is a cross between a corporation and a partnership, and the partners enjoy some limited personal liability. ... There is one significant difference between LLP and LLC.

John G. Anai
02-13-2020, 12:17 AM
An LLP is a general partnership formed by two or more owners – referred to as partners – and the LLP definition is similar to that of an LLC. It is a cross between a corporation and a partnership, and the partners enjoy some limited personal liability. ... There is one significant difference between LLP and LLC.The difference between LLP and LLC is an LLC is a limited liability company and an LLP is a limited liability partnership. According to the government, specifically the IRS, an LLC is a business organization that is formed lawfully under the state by filing articles of organization.
https://aleximbuilders.com/

Rahul28
02-04-2021, 02:44 AM
The difference between LLP and LLC is an LLC is a limited liability company and an LLP is a limited liability partnership. According to the government, specifically the IRS, an LLC is a business organization that is formed lawfully under the state by filing articles of organization.