Law Offices of Irene Clarke David, Ltd. (847) 382-6620

Practice Areas: Family Limited Partnerships and Limited Liability Companies

A Family Limited Partnership (FLP) is a partnership, often created by clients with family businesses, rental property or investment portfolios. A general partner (usually a parent) has full control over the partnership. The limited partners are typically the children. As passive investors, the children (limited partners) have few partnership rights and are liable only for the amount of their investment. The general partner, however, has unlimited liability.

You need a legitimate business reason to create an FLP, and the business needs substantial assets. You can then use the FLP to make tax-favored gifts to your children during your lifetime and after your death.

Family Limited Partnerships are complex vehicles but the tax benefits that they provide can make them ideal in the right situations. Limited Liability Companies (LLCs) are often used instead of FLPs because LLCs offer many of the advantages of an FLP, but are less complex.

Law Offices of Irene Clarke David, Ltd. Irene Clarke David (847) 382-6620
Barrington, Illinois
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