Dual Status: Treating Partners as Employees | Practical Law
A Practice Note providing an overview of the current law related to treating individuals as both partners and employees of the same entity. It describes the types of equity compensation granted by partnerships and the appealing tax characteristics of the profits interest, the different tax and benefits rules that apply to employees versus partners, and the consequences of treating a partner as an employee. This Practice Note also analyzes various approaches to handling the dual status issue.