Target Allocations and Other Tax Considerations in Drafting LLC Operating Agreements

Drafting an LLC operating agreement without considering tax consequences is a costly mistake waiting to happen. Jason Navarino presents on “Target Allocations and Other Tax Considerations in Drafting LLC Operating Agreements” at an event hosted by myLawCLE. The presentation highlights the key tax considerations when drafting an LLC operating agreement, with a focus on the use of the “target allocation” method to achieve clients’ desired economic results. He discusses the entity classification rules applicable to LLCs, how the target allocation works and how to draft it into an operating agreement, understanding the mechanics and tax rules behind allocations and distributions, and maximizing qualified business income opportunities.