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A Practical Guide to LLCs

Length: 3 hours 47 minutes

In this seminar, an experienced panel will provide a practical introduction to LLCs.  The panel will compare the LLC structure to those corporations (including S corporations), partnerships and limited partnerships, citing the advantages and disadvantages of each such entity and how such advantages and disadvantages can shape one’s choice-of-entity decision.  The panel will walk through the mechanics of forming an LLC, including the drafting of the basic operating agreement. Working from actual operating agreements, the panel will review managerial, voting, governance and control structures (including consents and tie-breaker arrangements), typical as well as unique capital structures (including preferred interests, profits interests and class interests) and buy-outs and exit strategies (including drag-alongs and tag-alongs and buy-outs upon death).  The panel will discuss the use of equity-based incentive compensation arrangements in the context of an LLC and compare them to traditional corporate stock option plans.  Throughout its presentation the panel will highlight tax issues and benefits that arise from the utilization of LLCs, discuss new developments in the area of LLC law and provide real-world examples of the use of LLCs in specific businesses and contexts.

Agenda

9:00 – 9:50 am        Choice & Formation of LLCs    
•    Choice of LLC Considerations
•    Mechanics of Formation of LLC
•    Operating Agreement
                                Stella Lellos

9:50 – 10:40 am        Tax Aspects of LLCs            
•    Tax Characterization: “Check the Box” & Related Rules
•    Tax Treatment of LLC Classified as Partnership
•    Recent & Ongoing Developments
                                David E. Kahen

10:40 – 10:50 am        Break

10:50 – 11:45    am        Selected Special Uses of LLCs    
•    Use of LLCs in Acquisitions
•    Use of LLC Interests for Compensation
•    Use of LLCs in Asset Protection
•    Use of LLCs as Bankruptcy Remote Entities
                                Robert C. Kern, Jr.

11:45 – 12:35 pm        Fiduciary Duties        
•    Brief Comparison of Delaware & New York LLCs
•    Default Fiduciary Duties Under the Delaware LLC Act
•    Modification of Fiduciary Duties
•    Modification of Liability
                               Matthew S. Criscimagna

12:35 – 1:00 pm        Question/Answer Session    

CLE credit: New York: 4.5 total: 2.0 skills; 1.5 professional practice & 1.0 ethics. New Jersey: 3.5 general & 1.0 professional responsibility. California & Pennsylvania: 3.0 general MCLE & 0.5 professional responsibility. 


Original Recording Date: 11/21/2014


Produced By:

New York City Bar Association

Course Materials

  • A Practical Guide to LLCs Coursebook
  • Affirmation of Self-Study