Structuring Equity Compensation for Partnerships and LLCs: Capital and Profits Interests, Sec. 409A, Tax Issues
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide benefits counsel with an overview of the types of equity compensation arrangements available to partnerships and LLCs. The panel will discuss tax consequences, advantages and disadvantages, design and structuring, and implementation considerations. The panel will also explore critical challenges and pitfalls to avoid in light of the current tax law.
- Equity compensation alternatives available to partnerships and LLCs
- Profits interests
- Capital interests
- Options to acquire capital or profits interests
- Phantom arrangements
- Income tax consequences/advantages/disadvantages
- Design, structuring, and implementation considerations
- Section 83(b) elections
- Capital account book-ups and valuation
- Section 409A considerations
- Impact of new fee waiver proposed regulations
- Impact of partner/member status on being an employee
- Impact of partner/member status on employee benefits
- Conversion to C corporation
The panel will review these and other key issues:
- How does a capital interest differ from a profit interest, and what tax ramifications result from the type of equity interest granted?
- How does Section 409A apply to equity interests in LLCs?
- How does the Section 83(b) election apply to unvested interests?
- Can the partnership or LLC member receiving the equity interest also be an employee of the entity?
Timothy S. (Tim) Klimpl
Shipman & Goodwin
Mr. Klimpl is a seasoned attorney with experience providing ERISA advice and related services to a variety of plan... | Read More
Mr. Klimpl is a seasoned attorney with experience providing ERISA advice and related services to a variety of plan sponsors and employee benefit plans, including corporate, nonprofit, multiemployer and governmental plans providing retirement, health, disability, dental and other welfare benefits. In the field of executive compensation, he has assisted both employers and employees with equity and incentive compensation, nonqualified deferred compensation, Section 409A questions, and executive employment and severance agreements. Among other industries, Mr. Klimpl has represented clients in the financial, construction, medical, fashion, real estate and legal industries. He chairs the Fairfield County Bar Association Employment Law Committee.Close
David B. Teigman
Mr. Teigman is a partner in the Tax Department and a member of the Employee Benefits & Executive Compensation... | Read More
Mr. Teigman is a partner in the Tax Department and a member of the Employee Benefits & Executive Compensation Group. He focuses his practice on executive compensation and benefit matters, principally in connection with mergers and acquisitions, securities offerings and senior executive employment relationships.Close