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Equity Education

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.
Introducing the Cap Table 101 Video Series
Introducing the Cap Table 101 Video Series
Carta’s free Cap Table 101 video series teaches early-stage founders how to build a cap table to manage company ownership and prepare for fundraising.
Early exercise of stock options
Early exercise of stock options
When you early exercise stock options, you are purchasing stock options before they vest. Learn more about the potential tax savings, advantages, and risks.