Legal Question in Business Law in California

C-corp and LP setup
Not sure if I'm posting in the correct category, but seeking assistance in setting up my LP & C-corp properly. These companies will be in placed to hold real estate investments. Was told it's best to have 2 entities for the most protection. Hold assets in the LP and the C-corp will manage/operate business.

I understand the basics, however, want to confirm I have the partners setup correctly under these two entities. Then putting all shares into my FLP for further protection.

My LP - Partners:
1. GP 99% = my C-corp company
2. LP 1% = my name here??? not sure

My C-corp
1. Shareholder - my name here?

Since my C-corp will act as the managing company for my LP, is it legal that my name be both a shareholder in my C-corp and a 1% limited partner within my LP?? Seems tricky.

Not clear if I'm putting the correct names under each entity.

Thank you in advance.

Asked on 1/29/07, 9:11 pm

2 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

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Re: C-corp and LP setup

I have no idea what the answer to your question is, but why not go back to the person who told you that the arrangement you describe is "best." If this person is your golfing buddy or your Aunt Edna, disregard this advice entirely and consult a lawyer.

For that matter, what are you doing here? You can afford an experienced corporations attorney, and the advice you get will be worth its cost, so hang up from the Internet and go hire one.

Answered on 1/29/07, 9:42 pm

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