Randy Watson Posted April 2, 2009 Posted April 2, 2009 What is the best way to deal with a plan-owned legal entity (LLC) that has no value? We'd like to terminate the plan, but really don't know how to deal with this interest. Can we divide that membership interest up by creating individual membership interests for the participants and then distribute "in-kind"? Or would it be better to dissolve the entity completely? I really have no clue here.
J Simmons Posted April 2, 2009 Posted April 2, 2009 From the perspective of the Plan and the Plan fiduciaries, I like the in-kind distribution of LLC ownership interests. You do have to value it, but at least there is nothing that is being walked away from by Plan trustees or taken by a potential party in interest in dealing with the plan as part of the LLC's dissolution. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
masteff Posted April 2, 2009 Posted April 2, 2009 Is anything being done to terminate the LLC? Is there any reason to NOT terminate the LLC? Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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