Partners pay tax on income earned even if it is not paid out to them The taxation of Family Limited Partnerships should be carefully considered in advance of setting up and rolling out your new FLP. FAMILY LIMITED PARTNERSHIP DEFINED State laws have provisions allowing people to establish limited partnerships. Limited partnerships provide limited liability […]
People form family limited partnerships to transfer ownership of properties or assets to family members while still maintaining control, to save on estate & gift taxes, to shift income from parents higher bracket to children’s lower brackets, to provide some asset protection against creditors of the limited partners.
In stage 2 you go to extra length to establish more protection by not directly owning shares of stock or LLC shares in your own name and/or get the ownership out of California. You thus achieve some privacy by not having your name appear as the owner or officer or director in searchable public records.
Get your assets out of your personal name DANGERS OF OWNING ASSETS IN YOUR OWN NAME If you lose a lawsuit that has been filed against you personally then the winning party obtains a court judgment. That judgment is then enforceable against any accounts or property owned in your name. Thus, if you operate a […]