Which US states allow the formation of LLLPs for US real estate investments?
Allan Madan, CA
Question:
I’m a Canadian citizen and resident. My Canadian accountant told me to purchase US real estate through an LLP or LLLP. Which states allow for LLPs vs LLLPs to be setup?
Answer:
Unlike LLPs which can be formed in any state, only certain states offer the option for the creation of an LLLP. These states are:
- Arizona
- Arkansas
- Colorado
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Iowa
- Kentucky
- Maryland
- Minnesota
- Missouri
- Nevada
- North Carolina
- North Dakota
- Oklahoma
- Pennsylvania
- South Dakota
- Texas
- Virginia
- US Virgin Islands
In addition, while California does not have an LLLP-creation statute, the state does recognize LLLPs formed in other states but registering such LLLP in California will require the annual $800 franchise tax, similar to other entities formed in California.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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