Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

The information in this post is not entirely accurate.

You can certainly issue incentive equity, divide up ownership, AND take money from outside investors with an LLC. We did it frequently at the private equity fund I worked for a few years back.

Little known fact -- if you structure your employee's incentive equity as LLC profit interests, the ultimate payout is treated as capital gains as opposed to ordinary income (which is the case for vanilla options) for tax purposes. It does take a little more structuring but definitely worth the hefty payoff in my opinion.



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: