Nov 30, 2021
LLC Equity Compensation (and Incentive Plans)
By a fairly wide margin, LLCs are now the most common type of entity for both emerging and established businesses. The dominance of LLCs is a testament to their ownership, management and tax flexibility, as well as the fact that all 50 states now have well-developed LLC statutes. Whether a particular LLC is still a startup or is further along, its owners and operators may want to provide equity compensation to key employees and other service providers (like consultants and advisors). Equity compensation provides the following benefits to the company: 1.It helps to align the interests of key…
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