New P'Ship filing - Domestic LLC vs Domestic LLP

[AZ-Tax]

Upon reading TTB 20-14 and TTB 20-15, I am leaning towards a Domestic LLC due to the only line of business for the P'Ship is a residential rental.

[Gary2]

Huh? I'm not sure what the question is, but isn't the distinction a matter of state law? For tax purposes, aren't they both treated as partnerships, unless you're trying to make the election to not be treated as a partnership, and be treated as co-owners instead?

[taxxcpa]

LLP vs LLC

The reason for an LLP is that it somehow is supposed to protect partners from liabilities incurred by other partners. There is some question as to whether an LLC member has to pay self-employment tax on his share of income. The LLP partners must definitely pay the SE tax.

[JoshinNC]

Why would LLp partners pay SE if LLC Members don't?

They are both limited partners, right? Limited partners don't pay SE tax, right? Generally LLP's are reserved for professional services firms.