Ind. Code § 23-18-1-7

Current through P.L. 171-2024

Section 23-18-1-7 - "Distribution"

"Distribution" means a direct or an indirect transfer of money or other property or the incurrence or the transfer of indebtedness by a limited liability company to or for the benefit of its members in respect of their interests in the limited liability company. A distribution may be in the form of a declaration or payment of a dividend, purchase, redemption, or other acquisition of an interest, a distribution of indebtedness, or otherwise. The term does not include:

(1) amounts constituting reasonable compensation for past or present services or reasonable payments made in the ordinary course of business under a bona fide retirement plan or other benefit program; or

(2) the making of or payment or performance upon a bona fide guaranty or similar arrangement by a limited liability company to or for the benefit of its members.

However, the failure of an amount to satisfy subdivision (1), or of a payment or performance to satisfy subdivision (2), is not determinative of whether the amount, payment, or performance is a distribution.

IC 23-18-1-7

Amended by P.L. 40-2013, SEC. 5, eff. 7/1/2013.

As added by P.L. 8-1993, SEC.301. Amended by P.L. 130-2006, SEC.26.