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Why use a limited partnership instead of an LLC?

An LP might be better if any of the following apply: You want passive investors who cannot participate in management decisions. You already have an LLC that will serve as the general partner. You are not particularly concerned about the personal liability of the general partner.

What is the difference between an LLC and a partnership LLC?

There are two types of partnerships which differ in terms of liability, formation, and in some cases, taxation. Unlike LLCs, partnerships do not offer owners protection from liability. Although both options are pass-through structures for filing taxes, an LLC can seek corporate election partnerships cannot.

What is the difference between a limited partnership and an LLC in California?

California LLCs formed after January 1, 2024: Meaning, there is no more waiver (its $800 per year), and the California LLC Annual Franchise Tax is due in the 4th month after your LLC is formed. For example, if your LLC was approved on June 1, 2025: Your first $800 Annual Franchise Tax is due by September 15, 2025.

How do I avoid $800 LLC fees in California?

If you cancel your LLC within one year of organizing, you can file Short form cancellation (SOS Form LLC-4/8) with the SOS. Your LLC will not be subject to the annual $800 tax for its first tax year.