Family Limited Partnership (FLP)
Limited Liability Company (LLC)
- An FLP or Family Limited Partnership is a Limited Partnership in which all of the partners are family members.
- A Limited Partnership must have at least of one or more general partners and one or more limited partners.
- The Limited Partner is usually only liable for the debts of the partnership to the extent of his or her capital contributions. A limited partner participates in the profits and losses of the partnership.
- The General partner is personally liable for the limited partnership’s liability. The general partner controls the business and participates in the profits and losses of the partnership.
- An LLC or Limited Liability Company is a company which has many of the benefits of a partnership with corporation protections.
- Generally the owners (members) of an LLC have no liability for the obligations of the LLC.
- An owner member of an LLC can be an individual person or an entity.
- Management of an LLC can be by managers or members.
- A LLC is subject to Texas State Franchise tax.
If you would like help setting up an FLP or LLC please contact us to set up an appointment so we can discuss your individual needs.