Who typically sets up an FLP?
Families with business assets which they wish to own in common including assets which some family members wish to pass on to other family members may benefit from an FLP. For example, parents owning all or most of the interest in a restaurant who wish to involve their children in ownership and management of the business may benefit from setting up an FLP. The FLP permits the family to have flexibility in dividing ownership and control in ways which work for its members. Because the organizational costs can be substantial, families with business assets of less than $2 million rarely find it advantageous to establish an FLP.
