Our “Preferred” Limited Liability Structure (PLLC) includes the use of proprietary property which can not be used without permission.  This structure allows for two classes of members within the LLC.  Each class of membership has distinct rights and responsibilities which affect the amount of capital they are required to invest into the LLC.

Regardless of the particular situation, each PLLC transaction is negotiated between the parties on an arms length basis and typically requires an independent appraisal of the parties’ interests and capital contributions into the PLLC.

Given the right set of circumstances, and with the advice of counsel, the PLLC can be used to enhance a number of sophisticated planning transactions. 

Mergers/Acquisitions, Buy Out or Buy/Sell Arrangements

The PLLC transaction often allows for a more efficient Buy/Sell arrangement where the seller can receive more and the buyer can pay less.

Estate Planning Application

The PLLC structure can be combined with other traditional estate planning techniques or used separately to bring about a much more efficient and less costly transfer of wealth to future generations, oftentimes reducing the costs of death taxes by 50% or more.

Deferred Compensation Plan Alternative

When compared to traditional deferred compensation our PLLC structure better accomplish two primary goals: 1) we provide the employer with a higher rate of return on its capital used to fund the executive benefit and 2) we provide the executive with asset protection from the employer’s creditors, which is not available through deferred compensation arrangements.

COLI/BOLI Alternative

When compared to traditional COLI/BOLI arrangements, the PLLC structure over comes some of the recent regulatory changes which negatively affected COLI and BOLI arrangements.