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Equity Education

Thinking of converting from LLC to C-Corp? Here’s an equity plan to consider
Thinking of converting from LLC to C-Corp? Here’s an equity plan to consider
Many LLC founders and executives want to know what type of equity plan will easily convert with the company when it ultimately converts to a corporation.
An LLC equity plan that requires no cash payment from employees
An LLC equity plan that requires no cash payment from employees
For companies organized as LLCs taxed as partnerships, there is an equity option for employees that is both non-taxable and requires no cash payment.
How LLCs can use the profits interest ‘catch-up’ provision to make key hires
How LLCs can use the profits interest ‘catch-up’ provision to make key hires
LLCs have an option if they want to provide equity recipients with economic rights to current capital value of the LLC as of the date of the grant.
Customizing multiple LLC equity types for different groups of employees
Customizing multiple LLC equity types for different groups of employees
Two or more groups of employees may have different incentives, performance goals, and retention schemes that do not easily fit into one type of LLC equity plan.
How to grant LLC equity that allows employees to keep employee status
How to grant LLC equity that allows employees to keep employee status
In the LLC context, there are two common approaches to addressing this issue: create a separate entity, or issue unit appreciation rights.
Post-termination exercise period (PTEP)
Post-termination exercise period (PTEP)
Employees usually have 90 days to buy their options when they leave a job. Learn about the 90-day post-termination exercise period window and why it's changing.