LO.2 Janda and Kelsey contributed $1 million each to the JKI, LLC in exchange for 45% capital

Question:

LO.2 Janda and Kelsey contributed $1 million each to the JKI, LLC in exchange for 45% capital and profits interests in the entity. Lilli will contribute no cash, but has agreed to manage the LLC's business operations in exchange for an $80,000 annual salary and a 10% interest in the LLC's capital and profits (valued at $200,000). What are the consequences of the entity formation and Lilli's compensation arrange ment to the LLC members? To the LLC itself?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: