Implementing Profits Interests Through an Aggregator: A Practical Guide for LLCs
Many LLCs want to offer employees the economic benefits of equity ownership without triggering the tax and administrative burdens of making them partners. This guide provides a practical roadmap for designing and implementing an Aggregator Entity structure (often called a Management Holding LLC), an approach that preserves W-2 employee status while aligning employees with company…
Equity Compensation Strategies: Navigating Equity Alternatives for LLC Employees
Attracting and retaining top talent isn’t just about salary,it’s about providing ownership-like opportunities that align employees with long-term company success. For LLCs, however, structuring equity-based incentives comes with unique hurdles compared to C- or S-corporations. Further complicating matters, issuing true ownership interests (such as Profits Interests) could convert employees into partners for tax purposes, and…
