Tag Archives: limited liability companies

Greenlight: IRS lets LLCs adopt ESOPs

A recent IRS ruling creates opportunities for Limited Liability Companies (LLCs) that want to utilize an Employee Stock Ownership Plan (ESOP). Here’s why: For many years the LLC has been the business entity of choice. It offers liability protection, design flexibility, and certain tax advantages to the owners. One of the disadvantages, when compared to a corporation, was that the LLC and its owners could not adopt an ESOP as a technique for sharing ownership with employees, for succession planning purposes, or ownership liquidation. However, that is about to change.

The rules under the Internal Revenue Code have so far limited the use of ESOPs to C- or S-Corporations. One of the requirements for an ESOP is that it invests predominantly in qualifying employer securities. LLCs were not permitted to have ESOPs because the membership units were not considered qualifying employer securities.

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ILN Today Post


Common Limited Liability Companies for Foreign Investment in ASEAN 

The coming ASEAN Economic Community continues to attract global attention as a popular business and investment destination. However, in today’s marketplace, it’s difficult to stay current with all the information available, and for the potential investor, the amount of relevant data is staggering. One of Dej-Udom & Associates’ strengths is its ability to serve as an international legal and business resource for investors interested in Southeast Asia. Our ongoing series of reports and articles allows the firm to pass on significant information about the region. A limited liability company is a preferred business structure for foreign investors in ASEAN countries; and in Part II of this article, our Corporate Department summarizes the process for incorporating a limited company in five ASEAN countries – Laos, Myanmar, Philippines, Singapore, and Vietnam. We’ve updated the Vietnam section to reflect the changes under the new Enterprise Law and Investment Law which come into effect on July 1, 2015. More…

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