Canadians who own an interest in a Florida limited liability limited partnership, commonly known as a LLLP, will soon have to pay more taxes unless they take swift action. The Canadian Revenue Agency recently announced that Florida and Delaware LLLPs will no longer be treated as pass-through entities for Canadian income tax purposes, and will be taxed as a corporation to the Canadian partner. In almost all instances, this will result in higher tax bills for Canadians owning an interest in a LLLP.
In most instances, with proper planning, Canadians can avoid this higher tax burden. If you have questions regarding your partnership investment, or the impact of these new rules, please contact one of our Business Services or Tax Law attorneys at 941.748.0100 to assist you.