Family Limited Partnership (FLP)

Limited Liability Company (LLC)

FLPs

• An FLP or Family Limited Partnership is a Limited Partnership in which all of the partners are family members.
  

• A Limited Partnership must have at least of one or more general partners and one or more limited partners.
  

• The Limited Partner is usually only liable for the debts of the partnership to the extent of his or her capital contributions. A limited partner participates in the profits and losses of the partnership.
  

• The General partner is personally liable for the limited partnership’s liability. The general partner controls the business and participates in the profits and losses of the partnership.
  

LLCs

• An LLC or Limited Liability Company is a company which has many of the benefits of a partnership with corporation protections.
  

• Generally the owners (members) of an LLC have no liability for the obligations of the LLC.
  

• An owner member of an LLC can be an individual person or an entity.
  

• Management of an LLC can be by managers or members.
  

• A LLC is subject to Texas State Franchise tax.
  

214-368-7100

If you would like help setting up an FLP or LLC please contact us to set up an appointment so we can discuss your individual needs.

214-268-7100

info@clarklawfirm.net