How to Fund an FLP
- 1). Transfer "safe assets" into your FLP. According to the Asset Protection Law Center, you can fund your FLP with "safe assets." Safe assets are those with a low probability of triggering a lawsuit; they include things you own outright. The family home, cars owned by your family members, and other family assets are considered safe assets.
- 2). Further fund the FLP with personal savings and investments. Before using your personal savings and investments, however, you should open an account in the name of your FLP. To do this, simply visit a bank and show proof of your FLP. You will need a certified copy of your Certificate of Limited Partnership and the FLP's taxpayer identification number.
- 3). Apply for loans and use the loan money to fund the FLP. Just as with any limited partnership or business, much funding comes from loans (this is especially true at the startup stage).