Who sets up an FLP?
Usually families with business assets which they desire to own in common, including assets which some family members wish to pass on to other family members, benefit from an FLP. For example, parents owning all or most of the interest in a store who want to involve their children in the ownership and management of the business may benefit from setting up an FLP. What the FLP does is to allow the family to have flexibility in dividing the store’s ownership and control in ways which will work for its members. Inasmuch as the organizational costs can be substantial, families having business assets which total less than $1.5 million rarely find it to their advantage to establish an FLP.
