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Corporate Matters: Profits Interest Basics

Volume 5 Number 5    |    Read Article

By Simon H. Prisk

In the latest in his series of articles on the relative flexibility of limited liability companies and their desirability for use in many instances, including joint ventures, Simon H. Prisk looks at grants of profits interests as a means of compensating service providers and employees. If done properly, these incentives can be optimized by favorable tax treatment, achieving the same or better tax results than incentive stock options available to C-corporations and S-corporations. If done without proper thought and planning, the results may be suboptimal.    See more →