How can we decide between FLPs, LLCs, corporations and the other entities we often hear about?

It can be difficult to decide upon the right entity in a given situation. You will probably need both your attorney and accountant to sort through their relative advantages and disadvantages of each entity as it applies to your situation. Or go online to for a fuller explanation of each of these entities.

But as we stated, it is not unusual for clients with more complex holdings to use all these and other entities. For example, we may set up a limited partnership to own a client's 'safe' assets (investments, etc.) and the client's ownership interests in LLCs or C corporations. We may have a number of LLCs (one for each business or real estate investment) or C corporation interests. An S corporation may fit into the equation for tax reasons. The limited partnership interest, in turn, may be owned by a living trust or a domestic or international asset protection trust for added protection or probate avoidance. The planning possibilities using these different entities are endless. So the decision of choice of entity should not be exclusively a legal decision. Since the decision also involves taxes, operational, regulatory and other factors it then necessitates involving the client's accountant, business lawyer, and possibly the client's estate and/or financial planner as well.