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Estate & Asset Protection
Wealth transfer · valuation discounts

Form a Family Limited Partnership. Wealth transfer + valuation discounts.

A Family Limited Partnership (FLP) holds family investment assets in one entity. Parents (general partners) retain management; children (limited partners) own most economic interest. Gifts of limited partnership interests qualify for valuation discounts (typically 20-40% off NAV) due to lack of control and lack of marketability - moving wealth to the next generation more efficiently than direct gifts. We form the FLP, transfer assets, and coordinate with your estate planner.

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All 50 states + DC 60-day money-back SOC 2 Type II
How it works

How we handle Family Limited Partnership, end-to-end.

A Family Limited Partnership (FLP) holds family investment assets in one entity.

1

Asset selection

FLP holds investment assets: marketable securities, real estate, business interests. Operating businesses with active management generally not put in FLPs (IRS scrutiny). Best assets: passive investments with longer-term hold.

2

Entity formation

FLP formed as a state-law limited partnership (LP). Parents are general partners (manage); children are limited partners (own economic interest). Operating agreement specifies management, distributions, transfer restrictions.

3

Asset transfer

Initial assets transferred to FLP in exchange for partnership interests. Parents receive small general partnership interest plus limited partnership interest; gifts to children eventually transfer LP interest.

4

Gift planning

Annual gifts of LP interests to children (or to dynasty trusts for grandchildren). Each gift qualifies for valuation discount. Annual gift exclusion ($18K/year/donee 2025) applies. Larger gifts use lifetime exclusion ($13.99M 2025).

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent family limited partnership pricing.

Government fees pass through at cost. No upsells.

Standard FLP

$4999
FLP formation + initial transfer.

FLP formation, operating agreement, asset transfer coordination. Estate planning attorney coordination for gift planning integration.

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FLP + valuation appraisal

$9999
Includes qualified appraisal.

FLP plus qualified appraisal of the discount applied to LP interests. Required documentation for gift tax filings. Appraisal by independent business valuation firm.

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Complete wealth transfer plan

$24999
FLP + GRAT + dynasty trust.

FLP plus Grantor Retained Annuity Trust (GRAT) plus dynasty trust for multi-generational wealth transfer. Coordinated with estate planning attorney. For high-net-worth families ($10M+ estates).

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FAQ

About the Family Limited Partnership (FLP) Service.

What is a family limited partnership?
A family limited partnership (FLP) is a limited partnership used by families to hold and transfer assets, with senior family members as general partners controlling the assets and other members as limited partners, often for estate planning, asset protection, and gifting. We form the entities and structure the FLP with your advisors.
What is an FLP used for?
Primarily estate and wealth planning: it lets a family consolidate assets, transfer wealth to the next generation at potentially discounted values, and keep control with senior members, while adding a layer of asset protection. It is a sophisticated tool used with tax and estate counsel, and we help set up the structure.
How does an FLP help with estate planning?
By allowing senior members to gift limited-partnership interests to heirs over time, often at valuation discounts for lack of control and marketability, while retaining management as general partners, which can reduce estate and gift taxes. This is complex and must be done carefully with counsel, which we coordinate with.
Does an FLP provide asset protection?
It can add a layer: assets held in the FLP, with the charging-order limitations of the partnership form, are harder for a member's personal creditor to reach directly, similar to other limited-liability structures. We structure it for legitimate protection while noting it must be set up well before any claim.
Who controls the assets in an FLP?
The general partners, typically senior family members, retain management and control of the FLP's assets even as they gift limited-partnership interests to others, which is a key appeal. We structure the general-partner role so control stays where the family intends.
What are the risks or scrutiny around FLPs?
The IRS scrutinizes FLPs used purely for valuation discounts without a genuine business or investment purpose, and poorly structured ones can be challenged. They must be set up and operated properly. We coordinate with your tax and estate advisors so the structure is defensible, not just a discount play.
Is an FLP the same as a family LLC?
They serve similar family-planning goals, but an FLP uses the limited-partnership form with general and limited partners, while a family LLC uses the LLC structure, often with simpler management. We help you and your advisors choose the form that fits your family's control and tax goals.
Do I need tax and estate advisors for an FLP?
Yes: an FLP involves gift, estate, and valuation issues that require estate-planning and tax counsel to do correctly, since the benefits and the IRS scrutiny both hinge on proper structuring. We handle the entity formation and coordinate with your advisors on the planning.
Can File.Business set up a family limited partnership?
Yes: we form the FLP and any general-partner entity, obtain EINs, provide agents, and coordinate the structure with your estate and tax advisors, so the family partnership is properly formed to support the planning they design.

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