Why invest in a Limited Liability Partnership(LLP)?
A Limited Liability Partnership(LLP) is one that protects it members from liabilities held against their partners. Each member's liability is limited to the extent of his or her own investment. There are a number of advantages to this type of partnership:
Preferred tax rate:
A Limited liability partnership investment generates passive income for the limited partner, and is therefore a capital investment. Any distributed profit is considered capital gains and limited partners pay less taxes a result.
The risk exposure for limited partners in a LLP is limited only to the extent of their investment. =No personal guarantees are required, from lending institutions of otherwise.
Easy entry into property development:
Property development requires mass amounts of capital. A limited opportunity for individual investors to group together to participate in property developments that would otherwise be too large for any single investor.
Diversification reduces risk:
Participating in a fraction of a project with other investors, rather than the whole project individually, minimizes rash for investors.
Investors can rely on the experience and expertise of the General Partner to maximize the profitability of a project.
Limited liability partnerships are passive investments: limited partners are squared the hassle of having to make day-to-day operating decisions, which are both time-consuming and rishi for investors not thoroughly up to date with industry conditions. The limited partner does not have to deal with lending institutions, lawyers, accountants, or tradesmen.
Michael ching's property development business began in China. Between 1996 and 2000, he developed more than five million square metres of residential and commercial properties, including five major shopping centres.
In 2000 he immigrated to Vancouver and founded Toyu Group. Under his stewardship, Toyu has completed townhouses and four-storey condominium projects in Richmond and Point Grey; a 183-unit high rise project in Richmond, Versante, is also well under way and is slated for completion in the second half of 2008. Toyu Group also possesses land reserves that will continue the company's momentum well past 2010.