A Family Limited Partnership (FLP) is intended to be a powerful estate planning and asset protection tool for family businesses to protect wealth and pass assets to the bloodline beneficiaries all while reducing federal estate taxes.  

However, FLPs are recommended by old and archaic estate planning attorneys who are not cutting-edge and clearly do not know all the business structures and taxation.  

To be honest, it has been over 12 years since our Firm has formed an FLP – not because we don’t know how, but because the case law, asset protection planning, and tax benefits of forming an LLC far outweigh the benefits of FLPs.  FLPs are old planning and fail to provide the protection that an LLC can provide for families.  LLCs can do everything an FLP does and much more.  But most importantly, LLCs have the best asset protection and have been determined by all the courts as the most powerful planning structure for businesses.