Tax Treatment of Equity Compensation for LLC Members
Structuring Equity-Based Interests for Optimal Tax Outcomes
Recording of a 90-minute premium CLE/CPE webinar with Q&A
This CLE course will provide tax advisors with an overview of the types of equity interests an LLC can issue and discuss the resulting tax impact for the owner, existing members and the entity. The panel will outline best practices for structuring equity incentive arrangements to optimize tax outcomes.
Outline
- Tax consequences of capital interests
- Tax consequences of profits interests
- Valuation issues
- Impact of proposed carried interest legislation
Benefits
The panel will review these and other key questions:
- What are the differences between profits interests and capital interests?
- What is the difference between structuring profits interests where liquidation is by capital accounts and where liquidation is in accordance with distributions?
- How can profits interests be structured so that profits interests recipients are treated as close as possible to holders of capital interests?
- Is a section 83(b) election needed?
- Should profits interest recipients be treated as partners and not employees? What are the tax implications?
- What effect could the pending carried interest legislation have on equity compensation for LLC members and what steps can members take to lock in favorable tax treatment under current law?
Faculty
Christian M. McBurney
Partner
Nixon Peabody
Mr. McBurney practice area is federal income taxation with particular emphasis on tax planning for private... | Read More
Mr. McBurney practice area is federal income taxation with particular emphasis on tax planning for private equity, partnership and corporate transactions. His private equity work includes structuring U.S. and non-U.S. funds and funds-of-funds, advising investors on tax-efficient investing structures, advising fund managers on their structures, and advising on FATCA, the 3.8% Medicare tax, publicly-traded partnership transfer, state withholding, and other investment fund issues.
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L. Andrew Immerman
Partner
Alston & Bird
Mr. Immerman concentrates on federal income tax matters, including domestic and international tax planning and... | Read More
Mr. Immerman concentrates on federal income tax matters, including domestic and international tax planning and transactional work for joint ventures, partnerships, limited liability companies and corporations. He has helped structure many sophisticated partnership and limited liability company transactions and has represented the target or the acquirer in numerous corporate mergers and acquisitions.
CloseDaniel N. Janich
Officer
Greensfelder, Hemker & Gale
He counsels corporations, executives and business professionals on employee benefit plan design and administration,... | Read More
He counsels corporations, executives and business professionals on employee benefit plan design and administration, executive compensation arrangements, and employee issues in mergers and acquisitions. He is an experienced litigator of benefits and executive compensation claims, and serves as special benefits counsel to firms and corporate law departments in transactional and litigation matters.
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