Private Equity-Sponsored LLCs: Negotiating Tax Distributions for Preferred Equity Investments

This article explores certain economic implications of the manner in which a limited liability company with preferred interests calculates the amounts distributed to its members to pay taxes. The article uses numeric examples to demonstrate the way in which tax distributions may distort the economic...

Full description

Saved in:
Bibliographic Details
Published inThe journal of private equity Vol. 17; no. 2; pp. 9 - 17
Main Author Spiro, Michael
Format Journal Article
LanguageEnglish
Published London Institutional Investor, Inc 01.04.2014
Euromoney Trading Limited
Pageant Media
Subjects
C corporations
Capital account
Corporate income taxes
Equity
Equity funds
Financial investments
Income taxes
Investment tax credits
Liability
Limited liability companies
Medicare
Partnership agreements
Private equity
Sales taxes
Stock sales
Stockholders
Studies
Tax regulations
Taxable income
Taxation
Taxes
Taxpaying
Online AccessGet full text

Cover

More Information
Summary:This article explores certain economic implications of the manner in which a limited liability company with preferred interests calculates the amounts distributed to its members to pay taxes. The article uses numeric examples to demonstrate the way in which tax distributions may distort the economic arrangements of the parties to a transaction.
ISSN:1096-5572
2168-8508
DOI:10.3905/jpe.2014.17.2.009