Is it Better to Hold Real Estate in a LLC or LLP

My question involves business law in the state of: florida

We own two rental house properties ..both Deeds are recorded on both names (father and son)...We decided create a LLC and transfer those properties to there..
Because ownership are 50/50, sound like a parnetrship application or could be file as LLC with one owner and one member ...(On our case,not matter any type of quitclaim deed) (LLC filling fee are $125 compare with LLP $1000)... After a litlle talk with a CPA ;I still little confusing on how to submit the application..Please I will appreciated any help with this....

Is this property financed? You do understand that your bank may have issues with you doing this transfer. You're going to have to explain why it is you think you need an LLC/LLP as well. You know you have a 70 cents per hundred tax on the deed as well to do this?
The nature of LLC vs. LLP depends on how you intend to manage the property. You seem confused on the terms. The terms owner and member mean the same thing in Florida. Unless you're cutting one of you out in the ownership of the property, you want two owners (members) on the LLC. Perhaps you should talk to the LLC some more and perhaps an attorney.

Thanks for your response....properties don't have any mortgage..are paid off.My concern was if i could file for LLC with two members as owner,or if doing this way
going to be treated as some diferent type of Llc,as llp. How and wich form should I pick online on order to file...the LLC,or the LLP? thanks

My advice: Don't waste your time or your money.

An LLC or LLP is not going to shield you from your personal liability for negligence or your personal contractual obligations. Beyond that, there isn't anything to be concerned about.

I had three rentals for 20 years. I owned them as an individual. Never had anybody sue me for anything. Never had a liability claim on the insurance either.

Thanks ...I going to keep on my mind ,your advice too....

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Quoting adjusterjack

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An LLC or LLP is not going to shield you from your personal liability for negligence or your personal contractual obligations. Beyond that, there isn't anything to be concerned about.

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While this is true, an LLC (or corporation for that matter) would protect one of the members from personal liability for the negligence of another member. The permutations of how many things can happen is vast, and a limited liability entity is never a bad idea. With a LLP someone still has to be the general partner and have greater exposure, so that doesn't work well for a two-person entity.

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Quoting Bubba Jimmy

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With a LLP someone still has to be the general partner and have greater exposure, so that doesn't work well for a two-person entity.

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That’s true for a limited partnership (LP). But a limited liability partnership (LLP) in most states that offer it gives limited liability protection for all partners; there is no general partner like there is in a LP. In Florida, see statute § 620.8306(3) regarding the liability of partners while a partnership is a LLP, which states in relevant part: “An obligation of a partnership incurred while the partnership is a limited liability partnership, whether arising in contract, tort, or otherwise, is solely the obligation of the partnership. A partner is not personally liable, directly or indirectly, by way of contribution or otherwise, for such an obligation solely by reason of being or so acting as a partner.”

Yes, I had a momentary memory glitch... I sometimes read too fast and say stupid things. There is still a down side to an LLP in the sense that partners can incur shared partnership liability for individual acts of the other partners more easily than in a well organized LLC.

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Quoting Bubba Jimmy

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Yes, I had a momentary memory glitch... I sometimes read too fast and say stupid things. There is still a down side to an LLP in the sense that partners can incur shared partnership liability for individual acts of the other partners more easily than in a well organized LLC.

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It’s easy to misread the references to these different partnership entities -- there is the LP, the LLP, and in some states the LLLP. On a quick read it’s easy to misread the number of Ls you're looking at. :p

In my state, the LLP is popular among certain professions that traditionally have practiced as partnerships since the LLP statutes use the partnership rules with tweaks to provide the limited liability protection to the partners. The LLC statutes are more corporate like in terms of governance. They also like that the owners of LLPs are called “partners” rather than “members” as the owners of LLCs are called. But then in my state, there is no difference in the limited liability protection the owners get between a LLC or LLP to push them one way or the other, so the internal governance is what makes the difference in what they choose. Of course, if the business will have just owner, then the LLP is not an option since all partnerships require at least two owners.

There are also subtle differences between the (Revised) Uniform Limited Liability Company Act that most state LLC statutes are modeled after (Delaware is it's own animal) and the Uniform Limited Partnership Act. The partnership act retains some of the agency law rules of general partnerships that allow one partner to bind all of the partners by default, whereas most LLC statutes only allow managers to do this. Of course in both cases, parties can contract around some of the differences. I would have to study the matter if I was deciding on one vs. the other, but I tend to have a pro-LLC bias because I understand RULLCA, ULLCA, and DLLCA pretty well. I think of LLPs as being more appropriate for law firms and other professional associations that have traditionally been partnerships, but in Florida we have the professional corporations that law firms tend to choose over LLPs. LLP is actually one of the least used entity forms in Florida for whatever reason that might be.