CRA states that it sees no substantive differences between LLCs, and LLPs and LLLPs

In its oral comments at the 26 May 2016 IFA Roundtable, CRA indicated it had finalized its view that Florida and Delaware limited liability partnerships and limited liability limited partnerships are corporations for ITA purposes, but indicated that it was 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.

In its written response published yesterday, CRA referred to the entities’ “separate legal personality” and “the extensive limitation of liability afforded to all of their members,” and also stated:

[I]t has become widely accepted that U.S….LLCs…are properly viewed as corporations for the purposes of the Act, notwithstanding…Anson… . We see little substantive difference between LLPs, LLLPs and LLCs governed by the laws of the states of Florida and Delaware.

24 other states provide for LLLPs or LLPs. CRA stated:

We suspect that much of this reasoning may be applicable in respect of entities of other states of the U.S. and perhaps other foreign jurisdictions… .

Neal Armstrong. Summary of 26 May 2016 IFA Roundtable, Q. 1, 2016-0642051C6 under s. 96.