b'Class A-2 could be your equity class that splits distributable cash with the management class (Class B).Alternatively, sub-classes can be used to offer higher returns to those who invest more, help co-guarantee loans, or invest early.Class B ClassBincludesmembersoftheassetmanagerand/orotherswho provide services to the company. They keep a percentage of the ownership interests in the company in exchange for a nominal amount (e.g., $1,000 total). Class B members typically only get their share of distributable cash after Class A members receive their share of distributable cash for the year (i.e.,apreferredreturn),althoughthiscanbecalculatedandpaidin quarterly increments. As such, Class B returns are subordinate to Class As preferred returns, which is important for tax reasons.Management Fortheassetmanager,youshouldhaveaseparatelimitedliability company that includes the active management team as its members. These members may be individuals or other entities.People often askhow should I take title to my management interests? Many of our clients use a limited liability company that they have branded for this purpose.In truth, the primary reason to have a limited liability company inside of a limited liability company is if you are concerned about being sued by the other members of the limited liability company. It probably isnt as 188'