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One-Off LLCs for Limited Partnership Investment
Posted on 3/7/23 at 12:14 pm
Posted on 3/7/23 at 12:14 pm
Been getting more and more opportunities for limited partnership investment. Curious what the thinking is on setting up individual LLCs for each investment our carrying them under a single LLC.
2
Posted on 3/7/23 at 4:11 pm to DandyPimp
So, if it's a limited partnership, you as the limited partner are already offered protection from legal issues. You can only lose your investment.
Sticking it in an LLC would thus only offer two benefits:
1) Creditor protection (from your creditors, not the business you are investing in - as that's already covered buy the LP)
2) Invrsting with others (such as a family LLC or an investment club)
Unless you have different people wanting to invest in different things together, I'm not sure how seperate LLCs would benefit you.
Sticking it in an LLC would thus only offer two benefits:
1) Creditor protection (from your creditors, not the business you are investing in - as that's already covered buy the LP)
2) Invrsting with others (such as a family LLC or an investment club)
Unless you have different people wanting to invest in different things together, I'm not sure how seperate LLCs would benefit you.
This post was edited on 3/7/23 at 4:12 pm
Posted on 3/8/23 at 10:06 am to DandyPimp
If the LP agreement has provisions that may require limited partners to make additional capital contributions, a one-off LLC may be preferable instead of owning the LP interest individually...if you didn't want to make the additional capital contribution, you may be personally liable for the contribution anyway if you owned the LP interest individually. If a shell LLC owned the LP interest, you would not have any personal liability.
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