Limited Partnership vs. Land Trust - Posted by Steve C (TX)

Posted by Rob FL on April 06, 1999 at 06:48:08:

The life story of LLCs has really just begun due to newer state laws and IRS rulings, so many people still use the LPs and S-corps. I happen to have an S-corp myself but that will be convereted to LLC in the future. Read some of Bill Bronchicks articles on the subject.

Also, here is another interesting site on the subject:

www.esclaw.com/llcarticle.htm (Of course this pertains to Florida–where I am)

You are right than many people still recommend the other entities. But times are a changing.

Limited Partnership vs. Land Trust - Posted by Steve C (TX)

Posted by Steve C (TX) on April 05, 1999 at 13:36:53:

Robert Kiyosaki is an avid believer in holding long-term properties in a Limited Partnership with a C-Corporation as the General Partner. I understand this philosophy and agree with it but if I?m doing a combination of flipping and holding long term is it practical to put the flips into a Limited Partnership while doing the rehab? I do not understand LP?s very well and am seeking competent advice about advantages and disadvantages of putting the properties that will be quickly cashed out into an LP.

Regards,
Steve

Re: Limited Partnership vs. Land Trust - Posted by Rob FL

Posted by Rob FL on April 05, 1999 at 18:08:31:

I would avoid the LP if it were me. LLCs will serve the same purpose and are properly cheaper and less paperwork to maintain than an LP and a corporation as the general partner.

I just read an article from an RE lawyer here in Florida last week about LLCs. The summary was that LLCs are most likely going to turn LPs and S-corps into dinosaurs. (Things of the past)

Re: Limited Partnership vs. Land Trust - Posted by Bronchick

Posted by Bronchick on April 05, 1999 at 17:57:24:

All properties should be titled in trust. The beneficiary can then be a corp, LLC or lim partnership. In most cases, an LLC is easier than a limited partnership with a corp gen partner.

Re: Limited Partnership vs. Land Trust - Posted by David Alexander

Posted by David Alexander on April 05, 1999 at 22:54:15:

Food for thought. Kiyosaki says that his advisors tell him just the opposite. He specifically mentioned one of them either S Corps or LLC’s, don’t remember which.
I believe it was LLC’s, but don’t quote me. Personally I go the route of the man making the big bucks.

David Alexander

Re: Limited Partnership vs. Land Trust - Posted by JHyre in Ohio

Posted by JHyre in Ohio on April 06, 1999 at 10:54:53:

Hi David!

Re LLC’s/S-corps being phased out: Unlikeely in the near term, unpredictable in the long-term. Even if phase-out were very probable, I’d take advantage of favorable law/entity for as long as possible. In addition, favorable situations are often “grandfathered”- in other words, when new restrictions are passed, existing entities retain benefits, but restrictions are applied to “new” entities. Publicly Traded Partnerships are a good example. When Congress deemed them Corporations and subjected them to double tax, most existing PTP’s were “grandfathered”- that is exempted from the new rules.

Bottom line: If the entity does the job best, use it. Worry about law changes later UNLESS a virtual certainty and no grandfathering.

Cordially,

John Hyre