CRA requires Florida and Delaware LLPs and LLLPs to convert to “true” partnerships before 2018

CRA has finalized its view that Florida and Delaware limited liability partnerships and limited liability limited partnerships are corporations for ITA purposes in light inter alia of their separate legal personality and limited liability. However, CRA is prepared as an administrative matter to continue accepting that an existing LLP or LLLP (that had been formed from scratch rather than being converted from an LLC) is a partnership if it is clear that the members are carrying on business in common with a view to profit, all members and the LLP or LLLP having been treating it as a partnership for ITA purpose, and the LLP or LLLP converts to a “true” partnership before 2018.

Neal Armstrong. Summary of 2016 IFA Roundtable, Q. 1 under s. 248(1) – corporation.