Family Limited Partnerships Defined

The Law Offices of Phillips, McElyea, Carpenter & Welch, P.C. are committed to providing our clients as many options to protect their hard earned assets via good estate planning advice.  If you own a business, a home, investment property, stocks, or other assets, you may need to protect yourself from attack by potential creditors or from exorbitant taxation.  One structure that may help you is a "Family Limited Partnership".




What is a Family Limited Partnership?

A family limited partnership (FLP) is designed to pool together a family's assets into a single family-owned business partnership.  This is different from a conventional trust and the family members actually own a share in the business.  There are two types of partners; general and limited.  General partners control all the decisions of the partnership and bear 100% of the liability.  Limited partners cannot participate in the management of the FLP and their liability is limited.

FLPs are holding companies in essence, acting as the holder of business interests, real estate investments, publicly or privately held securities, and other assets.  This allows family members to pool their resources and lower legal, accounting, and investing costs.   This allows the general partner to move assets to other family members (the limited partners) while still retaining control over the assets.  The limited partners have no rights of control, and they cannot liquidate the assets.


What are the benefits of a FLP?

Under the right circumstances, asset protection and tax minimization are benefits that can be realized from a FLP . They can be effective tools to help protect your personal wealth from creditor attack. By putting your assets into one or more FLPs, it may make these assets noncollectable from a creditor.  This can be a large deterrent to a litigant  (and their lawyer) to pursue action against you.


Get experienced legal help to setup a FLP!

When setting up any entity such as a FLP, trust, corporation, or LLC, consider getting the right legal help to ensure it is accomplishing your goals.  We have a wealth of experience and knowledge in business law at the Lake of the Ozarks...consider setting up a consultation with us.  We can fully explain the benefits of an FLP and other business structures that can help you with your tax situation and asset protection.  We will also ensure that all federal and state requirements are properly covered!

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Law Offices of Phillips, McElyea, Carpenter, & Welch, P.C.
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Phillips, McElyea, Carpenter & Welch, P.C.
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Camdenton, MO 65020   GET A MAP
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Location: Camdenton, MO 65020, USA

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