Syndication Law & The Private Placement Memorandum Attorney LLC vs. LP vs. Corporation: Which to Choose for Syndications?
The discussion centers on the various types of business entities, specifically focusing on the most appropriate ones for syndications. Among the options detailed are sole proprietorships, partnerships (including general, limited, and limited liability partnerships), Limited Liability Companies (LLCs), and corporations (including S corps and C corps).
Sole proprietorship is mentioned as a choice for individuals, with the downside being a lack of asset protection. Partnerships involve multiple people, with different levels of asset protection and responsibilities among general and limited partners. LLPs provide more asset protection compared to LPs.
LLCs stand out due to their versatility: they can consist of one or more members and offer good asset protection. A corporation can also be formed by one person, requires officers, and provides asset protection.
While discussing these structures, the speaker mentions the varying degrees of maintenance and governance required, with corporations being the most complex, and sole proprietorships and partnerships requiring less maintenance. The tax implications of each entity are also covered. LLCs and corporations can choose their taxation status, either as partnerships or S corps, while LLPs are taxed as partnerships and sole proprietorships report taxes on individual returns.
The discussion concludes with the assertion that for syndications, particularly in real estate, LLCs are typically the best choice. They have surpassed LPs in popularity because investors prefer having more influence over their investments, which LLCs provide. Corporations are a less popular choice unless the aim is to go public.
Read more about Reg D Structure - How should you structure your Reg D syndication offering?: https://www.moschettilaw.com/reg-d-syndication-structure/
Read more about Real Estate Fund Structures - Real Estate Syndication Fund Structures: https://www.moschettilaw.com/real-estate-syndication-fund-structures/
👇 SUBSCRIBE TO THE MOSCHETTI SYNDICATION LAW GROUP YOUTUBE CHANNEL NOW 👇
https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1
Check out these Top Trending Blog Articles –
1.) What is Reg D? The King of Securities Exceptions - https://www.moschettilaw.com/reg-d/
2.) What is Syndication? Raising Outside Capital For Investment - https://www.moschettilaw.com/syndications-and-funds/
3.) Private Placement Memorandums for Syndications and Funds - https://www.moschettilaw.com/private-placement-memorandum-attorney/
4.) Real Estate Syndication: Raising Investment Capital For Properties - https://www.moschettilaw.com/real-estate-syndication/
Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, and well as private equity firms. We keep our firm ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers without making you book an official appointment. And we’ll work with your ambitions and overall vision to help you close the current deal and fill-in that ‘missing’ piece - whatever you need - to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).
★☆★ CONNECT WITH THE MOSCHETTI SYNDICATION LAW GROUP ★☆★
YouTube: https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1
Facebook: https://www.facebook.com/syndication.attorneys/
LinkedIn: https://www.linkedin.com/company/moschettilaw
Messenger: https://m.me/tildenm
Web: https://www.moschettilaw.com
#Syndication #PrivatePlacementMemorandum #PPM
------Disclaimer------
Also, please note, this video and any content from Moschetti Syndication Law Group, Tilden, or anyone affiliated with either or both, does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information from these online sources may not constitute the most up-to-date legal or other information.
No viewer, user, or browser of content from us should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.