Annual Report and State Filing
We prepare and file your FLP's annual report on time, every year, so your company stays active and in good standing.
Business Formation by a Licensed Law Firm
Form a Family Limited Partnership With a Real Attorney
Form a Family Limited Partnership with a licensed attorney. Starting at $54.99, with state fees included in every state except Nevada.
Starting at $54.99 Filing Fees Included*
*State filing fees are included in every state except Nevada, where they are billed separately.
- 35+
- Years Practice
- 650K+
- Formed
- 4.9
The Basics
What Is a Family Limited Partnership?
A family limited partnership (FLP) is an LP used to hold and manage family assets such as real estate, investments, or a family business. Senior members typically keep management control while transferring economic interests to the next generation over time.
Families use FLPs for estate planning, centralized asset management, and clearer rules around gifts and succession. Formed and documented carefully, it can support valuation planning and keep outside creditors from easily reaching family wealth inside the partnership.
Key benefits include:
Wealth Transfer With Discounts
An FLP can help transfer wealth to the next generation while using valuation approaches that fit gifted limited interests. Families use it when they want a planned, documented handoff instead of ad hoc gifts.
Seniors Retain Family Control
Senior family members can keep management control as general partners even after economic interests move to children or trusts. That lets succession happen without surrendering day-to-day authority too early.
Protection From Outside Creditors
Assets inside a properly maintained FLP are harder for outside personal creditors of a limited partner to reach casually. Families value that extra layer when holdings include real estate or concentrated investments.
Centralized Family Asset Management
Centralizing family assets under one partnership creates one set of records, distributions, and decision rules. That organization reduces conflict and confusion as more relatives become involved over time.
Nationwide Coverage
Where Will You Form Your Family Limited Partnership?
Type your state to compare filing costs, timelines, and ongoing requirements.
Real legal supportAttorney-handled documentsWe handle the filing for you
The Wall Between You and Your Business
How a Family Limited Partnership Actually Protects You
Without a structured wealth transfer vehicle, families face a difficult choice: hold assets outright and face full estate tax exposure, or give assets away and lose control. Neither option serves the long term interests of the family or the estate.
A family limited partnership changes that. The FLP allows senior family members to retain full management control as general partners while transferring limited partnership interests to heirs at potentially discounted valuations. Wealth moves to the next generation. Control stays where it belongs. And the IRS has recognized this structure for decades.
- Senior partners keep full management control
- Ownership interests can transfer to heirs over time
- Family assets are harder for outside creditors to reach
- Clear governance reduces estate and family disputes
FAMILY LIMITED PARTNERSHIP TAX ADVANTAGES
The Tax Advantages Of Forming A Family Limited Partnership
DEFAULT
Pass Through Taxation
Profit is taxed once, on your personal return. No company-level tax, and you decide how income is split among owners.
Avoids double taxation
MOST COMMON
OPTION 1
S-Corp Treatment
Pay yourself a reasonable salary and take the remainder as profit distributions, which are not subject to self-employment tax.
Lowers self-employment tax
OPTION 2
C-Corp Treatment
The company is taxed on its own income at the flat corporate rate. Best if you plan to raise capital or keep profit inside the business.
Retain earnings, attract investors
Included in Every Formation
What's Included on our Service Fee?
Your service fee covers the formal documents, certificates, and resolutions banks and government agencies actually ask for, not just a state filing receipt.
- State Filing
- Corporate or Company Seal
- Records Book
- Articles of Incorporation
- Company & Corporate Minutes
- Bylaws or LLC Regulations
- Stock or Membership Certificates
- Banking Resolution
- Preliminary Name Search
- EIN Filing Support
Annual Compliance, Handled
We Keep Your FLP In Good Standing
We handle the annual filings, registered agent duties, and records your FLP needs to stay in good standing. Nothing for you to track, file, or remember.
Registered Agent
We serve as your FLP's registered agent at a physical address, receiving and forwarding official state mail so nothing important gets missed.
Governing Agreement and Records
We keep your FLP's governing agreement and company records organized, current, and ready when you need them.
FAQ
Common Questions About Forming a Family Limited Partnership
Still have questions? Talk to an attorney!
A Family Limited Partnership is a Limited Partnership formed by family members to hold, manage, and transfer family assets across generations. Typically, parents or senior family members serve as general partners and retain control over the assets, while limited partnership interests are transferred to children or other family members over time. It is one of the most effective legal structures for estate planning, asset protection, and generational wealth transfer.
Families with significant assets: real estate portfolios, business interests, investment accounts, or other concentrated wealth, who want to transfer that wealth to the next generation in a controlled, tax efficient way. It is also used by business owners who want to begin transitioning ownership to family members while maintaining operational control during their lifetime.
When limited partnership interests are gifted to family members, those interests are often valued at a discount relative to the underlying assets because limited partners have no control and limited marketability. This valuation discount allows more wealth to be transferred within annual gift tax exclusions and reduces the taxable estate. The IRS has rules around this, and the structure must be properly implemented to withstand scrutiny.
Full operational control. General partners make all management decisions, control distributions, and direct how assets within the partnership are invested or used. Transferring limited partnership interests to family members does not dilute that control. The FLP allows wealth to move while authority stays in place.
Yes, with important limitations. Assets held inside the FLP are generally protected from the personal creditors of individual limited partners. A creditor who obtains a judgment against a limited partner typically cannot seize partnership assets directly; they may only be entitled to a charging order, which gives them a right to distributions but no control over the partnership. The FLP must be properly formed and operated for this protection to hold.
Real estate, investment portfolios, business interests, and cash are the most commonly transferred assets. Certain assets, such as retirement accounts and personal residences, generally should not be transferred into an FLP for tax and practical reasons. Your attorney and CPA will identify exactly which assets belong inside the structure and which do not.
We draft the partnership agreement, file the certificate of limited partnership with the state, establish the general and limited partner ownership structure, prepare the initial capital contributions, and coordinate with your estate planning attorney and CPA to ensure the FLP integrates correctly with your broader plan.
The partnership filing itself is typically completed within 5 to 7 business days. The partnership agreement and the asset transfer strategy require additional time and coordination with your advisors. Your attorney will walk you through the full timeline at the start of the engagement.