FLLC

by Bruce Givner on May 17, 2011

A limited liability company is a business entity that insulates its owners from liability and is taxed for income tax purposes like a partnership.  A family limited liability company (FLLC) is a limited liability company formed principally among family members under California’s or another state’s limited liability company act.  A Family Limited Liability Company (FLLC) must have business purposes.  An FLLC should only be formed in a state where the state law requirements for liquidation of the FLLC shall be as the owners specify in their operating agreement. Carful selection of which state to form your Family Limited Liability Company (FLLC) should only be made after consulting a skilled attorney.

The owners of the Family Limited Liability Company (FLLC) are called “members.”  In an ordinary LLC, either the members, or one or more managers, manage and control the Family Limited Liability Company (FLLC).  It is preferable to name one or more managers to manage and control the Family Limited Liability Company (FLLC).  A managing member can be appointed to control the day to day affairs of the FLLC.  Neither the managing member(s) nor any outside manager(s) take on any personal liability.  The managers decide when to make distributions to members which, when made, must be proportionate to each member’s interest in the Family Limited Liability Company (FLLC).

The Family Limited Liability Company (FLLC) may own closely held businesses , real estate,  securities, or almost any other asset.

Contact Givner & Kaye Today to find out if the Family Limited Liability Company (FLLC) is right for you.
(310) 207-8008

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