Setting up the FLP Brokerage Account

• 1). Contact your current brokerage firm and ask for the application to open a limited partnership account. Don't ask them for a "Family Limited Partnership" application, since firms do not differentiate between a family limited partnership and a regular one. You might be able to download the appropriate application from the firm's website.
  
  
• 2). Complete the application and attach copies of the FLP legal document pages as requested. The brokerage firm will require that the FLP have its own tax identification number, since limited partnerships are legal entities that can be taxed.
  
  
• 3). Make a copy of the application for your records and mail the original application to your brokerage firm. Your firm will most likely require original signatures on the application.
  
  
• 4). Follow up with your brokerage firm if you have not received notification of your new account within one week.
  
  

Transferring Stock to the FLP

• 1
  Standing instructions allow you to request account transfers by telephone.executive image by CraterValley Photo from Fotolia.com
  
  Ask your broker for information on how to set up written standing instructions to transfer assets from your brokerage account to the FLP based on your phone call. Otherwise, your broker will require separate written authorization every time you want to make a transfer.
  
  
• 2). Complete the form provided by your broker, or write out the standing instructions according to the information you received.
  
  
• 3). Fax or mail the standing instructions to your broker, keeping a copy for your records.
  
  
• 4). Allow up to one week for your instructions to be reviewed and processed, then call your brokerage firm and make your request to transfer stock from your brokerage account to the account owned by the FLP. Your broker will likely ask you several verification questions before allowing the asset(s) to be removed from your account. These questions are designed to protect your assets from unauthorized transfers.
  
  
• 5). Expect an IRS Form 1099 for the FLP from your brokerage firm by the end of January in the following tax year, detailing any interest income, dividends or gains and losses attributable to the assets now owned by the FLP.