What is the legal mechanism by which Lionaire structures its investments?
Lionaire forms a Limited Liability Company (LLC) or Limited Partnership (LP) legal structure for each of the properties we purchase on behalf of our investors. Lionaire is the managing member of the LLC, or General Partner when we utilize an LP structure, while investors are members or limited partners, respectively. Investors own a pro rata ownership interest in the LLC or LP entity based upon the size of their investment. Lionaire utilizes these legal structures in order to limit an investor’s economic risk to their invested capital as well as to be able to pass through to investors the economic benefits of depreciation that derive from the property. Further, unlike some other forms of legal ownership, LLC and LP structures prevent Lionaire’s investors from being taxed twice; instead, any gains and distributions are only taxed once at an investor’s individual tax rate.
