Steps to Form a Family LLC
- Choose a name.
- File Articles of Organization.
- Identify a registered agent.
- Decide management structure.
Supermajority Amendment and Contract Drafting
A supermajority amendment requires a large majority of shareholders to approve changes. How do you draft a contract? Determine participation. Determine consideration.
Differences Between Family LLC and Regular LLC
What is the difference between a family LLC and a regular LLC? A family LLC is designed to provide legal protection for family members. It gives liability protection and control over who can be held liable.
Benefits of a Family LLC
What are the advantages of a family LLC? It facilitates management, protection, and transfer of assets across generations.
Formation and Protection
What is the difference in formation? The only difference is that family members form the family LLC. Follow general LLC formation steps – choose a name, file documents, identify an agent, and decide management structure.
Asset Protection in a Family LLC
How does a family LLC provide asset protection? It is protected from charging orders, allowing negotiation from strength if a creditor tries to force payment.
Family Business Structure
Should a family business be an LLC? An LLC offers liability protection without many of the administrative requirements of a corporation.
Setting Up a Family Business
One important advantage or benefit of setting up a family business under an LLC is to protect the family assets from business creditors.
Family Limited Partnership
A Family Limited Partnership is often called an FLP, is a business ownership arrangement made between family members who would like to own or run a business together.
General Information
In fact, about 90% of American businesses are family-owned. The Family Limited Liability Company allows children or other beneficiaries to receive limited interests in the FLLC/FLLP.
Structuring a Family LLC
How a Family LLC Should Work? Right from the start, ensure that you have your business structure and processes on paper. File an Operating Agreement to get everyone on the same page.