LO.2 Janda and Kelsey contributed $1 million each to the JKI, LLC in exchange for 45% capital
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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?
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Related Book For
Essentials Of Taxation Individuals And Business Entities 2019
ISBN: 9780357233290
1st Edition
Authors: William A Raabe, James C Young
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