Newbie Asking For Info Regarding FLP's
Hello Group,
I am interested in gaining valuable information regarding Family Limited Liability Companies.
null(I made a post in the Credit Forum but so far have not received a response. Perhaps posting here will be more helpful)
Here is the background info:
-8-10 family members want to form a company for REI, Stock Investments and Small Business Development
-All have jobs but average salary is 22K-30K each
-Average credit rating is poor-average. One has good credit but has just closed on his own home
-All have families but have agreed to contribute between 8-10K in the first year
-SInce everyone is gung-ho on REI, that is where we will concentrate most of our effort
That being said, we were going to form an LLC in NJ but someone mentioned FLP.
-Is there a big difference between the two?
-Does the state of NJ recognize FLP's (I researched but found little info)
-Would Lenders look at that formation any different (I have more questions in the CREDIT Forum)
Any advice that can be provided would be greatly appreciated
Thank you
Thanks Mantis,
I appreciate all of this helpful information.
I will look into the Navada LLC immediately to get things started. I will let you know how things turn out.
My thanks again
Mantis, thanks for your well done response, but next time please leave out the websites and links to the self claimed gurus and experts.
There are several very knowledgeable lawyers around the country, and in most cities of any size, who do a lot of FLP work for clients and whom I'd trust more than those alleged "gurus" who stay on the seminar circuit peddling their products and self-expertise.
Generally it's a truism in the legal profession that those who beat their breasts with the most vigor and brag to the world about their expertise, know less than some of the quieter guys and gals who aren't so pushy.
Hi John,
Are you saying that an FLP may be possible in my situation?
I really am looking for asset protection in this area but since we are looking to do stock market investment and business development in addition to REI's I dont know which structure is best.
Thanks again
While I'm sure no expert on FLPs, it does look like your situation calls out for some kind of formal family entity, either corp or Ltd Partnership.
If I were you I'd go in to see one of the corp lawyers in one of the big NYC firms and talk over your situation with him/her.
If you'll go to your closest courthouse, and find the law library, then find the Martindale Hubbell Legal Directory, it'll give you info on which lawyers and law firms do lots of corp and RE work ( as opposed to criminal, PI, etc.) so you know who to call and talk to.
For a few hundred bucks you could get a top-notch oprinion that would be valuable to your planning.
Also, there are some good books on the subject and I'd suggest you scour Amazon to see what you might find on Asset Protection strategies.
Good luck.
John Merchant