Should the vacation home be held in a limited liability company or limited partnership?
Owning a vacation home as a limited liability company (“LLC”), limited partnership (“LP”), corporation, or other entity (rather than in the names of the co-owners) can offer several advantages, including (i) protecting your other assts from liabilities arising from ownership of the vacation home, (ii) protecting the vacation home from seizure by your creditors (or the creditors of other co-owners), (iii) increasing flexibility for ownership changes, and (iv) adding the structure created by the large body of law that is applicable to these entities (but doesn’t otherwise apply to co-ownership). For properties located outside the United States, owning the shared vacation property as a U.S. LLC or other U.S. entity offers additional advantages which are discussed below. But owning a vacation home as an entity also has drawbacks. Creating and maintaining the entity structure involves costs that you would not otherwise incur, including formation fees, special taxes, and the annual cost of p
Related Questions
- Should the shared or fractional ownership vacation home be held in a limited liability company or limited partnership?
- Should the shared or fractional vacation home be held in a limited liability company or limited partnership?
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