California | Business Law
Legal Question
I recently formed an LLC and need to attract talent. Since I am a 1-person LLC start-up that hasn’t yet “gone live” and money is tight, I would like to offer phantom stock in lieu of paying a salary or compensation. I would like the plan to be structured so that vested individuals who work towards the success of the company would receive a share of the sale profits if and when the company is sold. I would also like for individuals to receive a share of the operating profits prior to the company being sold as profits are realized. I do not want to bring individuals on as members of the LLC, and also want to avoid securities issues. Is phantom stock the best way to do this or is there a better alternative option? Can you give me an idea how much it would cost to draft such an agreement?
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Read More Answered By: Bryan Whipple |
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