Allocating Voting and Economic Rights in LLCs: An Invitation to Confusion
I recently published in the Journal of Passthrough Entities, I published a two part article entitled Allocating Voting and Economic Rights in LLCs: An Invitation to Confusion.
This article explores a number of ways in which allocation of voting and economic rights in LLCs can create confusion and ambiguity, especially when contrasted with the rules required under the Internal Revenue Code for the maintenance of capital accounts. This article as well highlights problems that can arise when the allocation of economic and voting rights is linked to capital accounts. Considered as well as problems that arise under the LLC Acts when voting and economic rights are linked to contributed capital and the person whose rights are in question is an assignee who has never madea capital contribution to the LLC.
The article can be accessed through HERE IS THE LINK TO PART ONE and HERE IS THELINK TO PART TWO.
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