What is a Unitholder?
How Does a Unitholder Work?
Why Does a Unitholder Matter?
Unitholders and shareholders have different names because each is holding a different type of asset and has a different set of rights. For example, though unitholders possess some voting rights, those rights are often more limited than those of corporate shareholders.
Another difference is in the tax treatment of distributions made to unitholders versus shareholders. Distributions received by unitholders are designated as pass-through income. Pass-through income has not been taxed at the company level -- it is only taxed at the individual level. Shareholders receive dividends out of income that has already been taxed at the corporate level, and then shareholders must pay individual income tax on top of that, leading to the controversial event known as double taxation.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.