This is so confusing. Now I hear that it is better to hold property in an FLP rather than an LLC for asset protection, and limited liability. Does anyone know?
And does an FLP have to prepare tax returns like an LLC?
And what if you are single with no kids, or family members to have as partners?
Thanks,
FLP is not better or worse than an LLC, only different. you can choose to tax your LLC as a partnership, making them functionally identical.
yes, FLP must file a tax return
FLP is a partnership and must have more than one person. otherwise it’s not a “partnership” is it?
Thank you for the info on doing the tax return on the FLP! Can I use an S Corp to be my partner. Not a family member obviously - would that work?
Thanks, Jag
I’m not a lawyer or an accountant (so I suggest you contact one!), but a lot depends on what is your net worth and what you’re trying to protect. Getting a FLP is not cheap and your assets & net worth should justify the expense of having one set up.
Regards,
Patti Porter