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The Key Advantages of the US LP

As an American partnership, the Limited Partnership is a solid choice with plenty going for it. You get fast formation, confidentiality and a strong reputation. Many people love the LP above all for its versatility: it works as a US company for your real estate project or as the sponsor for a US visa, and it is just as well suited as the company named in your website's legal notice or as your launchpad in the States.

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Twelve advantages at a glance

01–12
01

A trading limited partnership

The LP is a partnership structured much like the limited partnerships familiar across Europe.

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02

Legal certainty

Because the LP's permanent establishment and place of tax assessment are crystal clear (both in the USA), you avoid the complex questions that partnerships (including the LLC) often raise under international tax law.

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03

Confidentiality

The partners are not reported to the state register and are therefore not publicly visible anywhere. Only the details of the general partner (usually a US corporation we provide) have to be listed.

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04

No information exchange

The USA does not take part in the OECD CRS international information exchange. Its US equivalent, FATCA, does not cover accounts of US companies whose shares are held by foreigners. Learn more about OECD CRS & LPs.

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05

Favorable taxation of your LP's profits

Thanks to the 2017 tax reform, the USA taxes business profits particularly favorably. Learn more about how the LP is taxed.

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06

A second economic foothold outside Europe

Especially today, a US LP can be the ideal second pillar for you outside the EU and the euro, helping you protect your wealth and income for the long term.

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07

Overdraft facilities from US banks

Unlike other foreign banks, some US banks grant overdraft facilities to new companies after just 6 months. Credit lines of $50,000 to $500,000 are not unusual. Learn more about overdraft facilities for a US LP.

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08

Double tax treaties

With the right tax structuring, the company enjoys the benefits and shielding effect of every double tax treaty the USA has signed. Learn more about how the LP is taxed.

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09

No VAT

There is no VAT in the USA. That means no tedious wait for a VAT number, less ongoing bookkeeping and better cash flow, because VAT simply isn't part of the picture. Learn more about how the LP is taxed.

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10

A strong reputation

As the world's largest economy, the USA enjoys an excellent reputation as a place of incorporation. With an LP, there is no risk of being seen as based in a tax haven or low-tax country.

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11

Fast formation & account opening

Compared with other offshore companies, the Corporation is formed quickly, and the same goes for opening the bank account. No waiting for months, as with many account openings abroad.

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12

US visas and green card

With the right planning, the LP can sponsor a US visa and a green card. Learn more about the US LP as a visa & green card sponsor.

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Get advice now on US company formation & management, US taxes and entering the US market. Book a one-hour consultation to work through the details of your US plans.

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