limited liability company Tag

Profits Interest – Info You Need to Know

You’ve probably heard of “stock options” that enable an individual to buy into a company at a future time. However, if you work for a limited liability company (LLC), you also have the option of utilizing a unique form of equity compensation known as “profits interest” which represents an actual current ownership interest in the LLC. Tax Free Equity Compensation A profits interest, when structured to be in compliance with relevant IRS “safe harbors,” is effectively tax free for the recipient, according to a great article published by Hutchison PLLC. This is because a profits interest basically represents an ownership interest in the...

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Benefits of an LLC for Real Estate Investments

Investing in real estate can be a very good strategy for creating a sustainable income stream for your estate plan. Though, real estate investments also creates inherent liabilities. Whether you invest in homes or apartments, areas such as laundry rooms or staircases, they all carry great risk of exposure. Even tenants themselves carry the risk of exposing you, the owner, to liability from potential environmental-contamination claims, fire-related claims, slip-and-fall claims and other injury claims. This is why steps should be taken to protect yourself, such as forming a Limited Liability Company (i.e. LLC). An LLC can be a great form...

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