Transfer on Death of LLC Membership Interests

Business owners who are looking for ways to avoid probate and transfer their business ownership interests and effectively might want to consider making their limited liability company membership interests transferrable on death.  While this procedure is not the right move in every situation, in some cases it is an appropriate way to handle the transfer…

Profits Interest vs Capital Interest – What’s the Difference?

When an ownership interest in a partnership (or LLC taxed as a partnership) is transferred to a member in exchange for services, the tax consequences of such transfer are governed by partnership tax law.  Ownership interests in partnerships can be profits interest, capital interests or both.  Partnership tax law is quite complex, and there is…