The Family Savings LLC
The Family Savings LLC can be used as an alternative to the Family Limited Partnership in many circumstances. In particular, individuals who are not primarily concerned with estate tax savings; will find that the Family Savings LLC has all of the asset protection features of the FLP but may be more convenient and flexible to create and maintain.
The Family Savings LLC is a specially designed type of Limited Liability Company (LLC). The LLC is a legal entity created by statute and permitted in all fifty states. The purpose of the LLC is to allow individuals to conduct their financial and business affairs in an efficient and convenient manner. It combines the best features of corporations and partnerships while eliminating many of the problems and complexities associated with each.
The LLC provides the protection from liability of a corporation without the formalities of corporate minutes, bylaws, directors and shareholders. At the same time, the LLC is treated like a partnership for tax purposes. That means that the LLC pays no income tax. All of the income and deductions flow through directly to the members personal tax returns. Further, like a partnership, the owners are permitted to adopt very flexible rules regarding the administration and operation of the business of the LLC.