By Warwick Wroth
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Extra info for Catalogue of the Imperial Byzantine coins in the British Museum
When a sole proprietor or an owner of a general partnership dies, the assets of the business may go to his heirs, but under state law the business ceases to exist. The business may be continued by the heirs of the business owner, but it will be viewed as a new business. The death of one partner of an FLP may cause the business to be dissolved unless the partnership agreement provides to the contrary. Most PARTNERSHIP AGREEMENTS provide for the continuation of the partnership upon the death of a partner by permitting the partnership interest owned by the deceased partner to be owned by his or her heirs or by providing for the purchase of the partnership interest of the deceased partner by the partnership or the remaining partners.
There are certain businesses that require special licensing or registration and cannot be used in the name of an FLP. Words that typically may not be used are: Accounting Bank Banker Banking Credit Union Trust United States Pharmacy Indemnity Guaranty Board of Trade Certified Accountant Engineering Underwriter Endowment Loan 26 Cooperative Disney Insurance Olympic Trust Company Federal Acceptance Medical National Thrift Chamber of Commerce Architect Lawyer Mortgage Savings Doctor start-up procedures CERTIFICATE OF PARTNERSHIP An FLP is officially created when a CERTIFICATE OF PARTNERSHIP (in some states called the Certificate of Existence) is filed with the secretary of state with the appropriate filing fee.
If the FLP owns the principal residence, this tax deduction is lost. Also, the deductibility of property taxes may be more beneficial if taken by an individual directly on his income tax return rather than by the FLP. Finally, any personal residence owned by an FLP no longer qualifies for the one-time capital gain exclusion available to individual taxpayers. By law, S corporation stock cannot be owned by a limited partnership. However, stock in a C corporation or limited liability company can be owned by a limited partnership.