TELESEMINAR: Incentive Compensation in LLCs and Partnerships – A National Perspective
December 20, 2013
12:00 – 1:00 p.m.
1.00 MCLE hours
The flexibility of LLCs and partnerships allows for a wide range of incentive compensation structures. The choice is not merely between equity and straight cash payments. Rather, the entity can offer a blend of equity, profit participation interests and appreciation rights. Within each structure, there are variations, including timing, vesting and taxability. A new consideration is the application of the new 3.8% Medicare tax. This program will provide you with a practical guide to forms of incentive compensation for LLCs and partnerships, the tax and non-tax consequences and tradeoffs of each, application of the new 3.8% Medicare tax and common traps.
- Incentive compensation in LLCs/partnerships – ownership stakes v. profit participation interests v. appreciation rights
- Compensation plans for LLC members/partners v. employees
- Restricted interests and types of vesting schedules
- Employment tax considerations, including the new 3.8% Medicare Tax
- Traps of exchanging ownership interests for services
Leon Andrew Immerman, Alston & Bird, LLP, Georgia