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Our LLC Structure
Copano is structured as a publicly traded limited liability company (LLC). As an LLC, we do not have a general partner and are not burdened by incentive distribution rights. We have a Board of Directors that is elected by our common unitholders. Our LLC structure combines the tax attributes of a master limited partnership, or MLP, with the corporate governance attributes of a corporation, as illustrated below.
| Characteristic |
Typical MLP |
Copano Energy |
Typical Corporation |
Non-Taxable
Entity
|
Yes |
Yes |
No |
Tax Shield on
Distributions |
Yes |
Yes |
No |
Tax
Reporting |
Schedule K-1 |
Schedule K-1 |
Form 1099 |
General
Partner |
Yes |
No |
No |
Incentive Distribution
Rights |
Yes; up to 50% |
No |
No |
Voting
Rights |
No |
Yes |
Yes |
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