Legal Question in Business Law in California
Limited Liability Partership
My brothers & sisters have inherited our parents farm land and it is being incorperated into the city of Brawley, Ca. We have concluded our sale of a portion of this property to Caltran thru the Trust and estate. In the next two months probate will conclude. Can we form a LLPartnership prior to close of probate so that the asscets can be transfered directly into the partership? What firm in this area (Imperial County) would be recommended. What is the general cost for forming this type of Partnership?
2 Answers from Attorneys
Re: Limited Liability Partership
You asked about a limited liability partnership (LLP). The prior answer discusses a limited liability company (LLC). These are completely different forms of business organization. Although you asked about an LLP, an LLC is probably more appropriate for a closely held farming operation.
One attorney or firm could represent all the siblings in setting up the LLC (or LLP) so long as the potential for conflict of interest were disclosed and all parties waived the potential conflict and consented to the representation.
Legal fees are hard to predict, as it depends to a large extent upon whether negotiations are necessary or whether all siblings are in accord on how the business should be organized and managed. Maybe $2,500 would be a median figure with a range from half that to ten times that.
The transfer of the properties and operations direct from the probate estate to the new LLC (or whatever) can probably be set up so that it appears "direct" for most practical (managerial) purposes, but for tax purposes each sibling will probably be treated as having received a share of the estate personally. In addition to business counsel to set up the new business, each of you should have tax advice and each should at least be aware of what the executor(s) and their attorneys are doing.
Re: Limited Liability Partership
You can form the LLC at any time. You can form it in Utah or Cal. Since you have a number of members, in addition to the LLC you should have an operating agreement to set forth in writing the terms of operation of the LLC. The cost will depend on whether you retain a Cal firm or do it locally. (You do not need an Imperial Co. attorney.) I am licensed in Ut and Cal, and can assist in answering any questions. You are welcome to call for a free consultation.
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