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  • videocam On-Demand
  • card_travel ERISA
  • schedule 90 minutes

Structuring Equity Compensation for Partnerships and LLCs: Capital and Profits Interests, Sec. 409A, Tax Issues

$347.00

This course is $0 with these passes:

CLE
ALL
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Description

A range of alternatives is available to partnerships and LLCs for providing equity compensation to their employees, including granting profits interests, capital interests, and options to acquire such interests.

Partnership and LLC equity compensation arrangements present executive compensation counsel with complex design, structuring, and tax challenges, unlike corporate equity compensation. Advisers must consider current tax law to effectively structure compensation for key executives and avoid unintended tax liability.

IRS guidance is limited on several important issues, including partners/members as employees for tax purposes, how Section 409A applies, and when 83(b) elections should be made.

Listen as our authoritative panel offers solutions and strategic approaches for structuring equity compensation for partnerships and LLCs and avoiding common pitfalls that can lead to disastrous tax consequences.

Presented By

Timothy S. Klimpl
Attorney
Klimpl Benefits Law, PLLC

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.

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Timothy Klimpl
Shipman & Goodwin LLP
David B. Teigman
Partner
Proskauer Rose LLP

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.

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, May 11, 2023

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Equity compensation alternatives available to partnerships and LLCs
    1. Profits interests
    2. Capital interests
    3. Options to acquire capital or profits interests
    4. Phantom arrangements
    5. Income tax consequences/advantages/disadvantages
  2. Design, structuring, and implementation considerations
    1. Section 83(b) elections
    2. Capital account book-ups and valuation
    3. Section 409A considerations
    4. Impact of new fee waiver proposed regulations
    5. Impact of partner/member status on being an employee
    6. Impact of partner/member status on employee benefits
    7. 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?