Posted by David Krulac on February 19, 2002 at 09:56:31:
part of the property. a GP could have 0% or I have seen .1%. Perhaps in IL there is a requirement for 1% ownership but that is not universal. Some states have corporate/franshise/capital stock taxes which apply to corps but not to LPs. Therefore for STATE tax purposes many are organized with minimal or zero ownership of the LP by the GP. Also the steup costs for an LP are usually less than a corp. Another mode used often is to have ONE corp general partner owning minimal or zero amounts of multiple LPs. You could set up a seperate LP for each property and have the same GP/corp for every one.