What makes a family business a family limited partnership?

The family “business” does not actually have to be a business in the traditional sense – assets such as real estate or investments can also be in a FLP, as can the family farm, ranch, or real estate holdings. The nature of the FLP allows you to shift the value of assets to other members, thereby reducing the size of the estate for certain members.

Can a family limited partnership ( FLP ) be dissolved?

The reality is that an FLP is a separate legal entity that has been formed, operated, and must be dissolved under the laws of the State and the applicable provisions of the Partnership Agreement.

How to register a farming partnership in Ireland?

They will need to: register the partnership with Revenue and the Department of Agriculture, Food and Marine (“DAFM”); enter a farm agreement; enter a partnership agreement that complies with the new legislation; add the new entrant’s name to the herd number; and open up a partnership bank account.

How does a limited partnership work in real estate?

It is not uncommon for a business owner to maintain control of the family business or real estate portfolio within a family limited partnership by retaining the general partnership interests. This enables the children to own an economic interest in the business while the parents retain full control over its operations and sale.

What can a family limited partnership do for a farm?

FLPs offer a potential strategy for family farms to transition the farm on to the next generation. For example, the farm could be set up as an FLP which places the older generation as the general partners and the younger generation as the limited partners.

What is a family limited partnership ( FLP )?

A family limited partnership (FLP) is a limited partnership with memberships/partnerships limited to family members. FLPs offer a potential strategy for family farms to transition the farm on to the next generation.

How are assets attached to a family limited partnership?

If a person contributes assets to an FLP, those assets are no longer owned by that person (although, as explained below, the person may still control those assets), and creditors of that person may not attach those assets merely because they have a judgment against a partner of the FLP.

What are the pros and cons of a family limited partnership?

These include: 1 General partnership interests. Since the FLP must be run as a business, this exposes general partners to any potential liability involving the partnership. 2 Costs and complexity. 3 Restriction on the types of assets transferred into the FLP.