Seventh Circuit Holds That For-profit Limited Liability Companies are Trades or Businesses under the MPPAA | Practical Law
In Central States, Southeast and Southwest Areas Pension Fund v. SCOFBP, the US Court of Appeals for the Seventh Circuit held that two limited liability companies (LLCs) are "trades or businesses" for withdrawal liability under the Multiemployer Pension Plan Amendments Act of 1980. The two entities were jointly and severally liable for the withdrawal liability of a third, insolvent entity that stopped making contributions to a multiemployer pension plan. All three entities are also under common control under IRC Section 414(c).