A family limited partnership (FLP) or a family limited liability company (FLLC) are often chosen because they allow you to reduce the value of your taxable estate, while allowing you to maintain control over the assets.
An FLP protects assets from potential claims. Creditors are not permitted to collect assets from a limited partnership in order to satisfy debts of the partners.
An FLLC provides protection from liability in a manner similar to a corporation, but may be easier to create and maintain because the FLLC is treated like a partnership for tax purposes and pays no income tax. The FLLC income and deductions are reported on the individual members’ personal tax returns.