A Family Limited Liability Company (FLLC) is frequently used to pass wealth from one generation to another. Before the advent of limited liability companies in Pennsylvania in 1994, family limited partnerships were the vehicle of choice for this type of family planning and are still used today. With a FLLC the owner of the FLLC (often the company’s founder) is generally the manager with full management authority, and his/her children are members of the FLLC without any management authority and without the ability to sell any part of their membership interest except, perhaps, to immediate family members. The tax benefits of such a program can be substantial. It is rarely too early to start succession planning. Should you be making such plans?
By: Alan Molod