Stock Option Plans for Startups vs. Profits Interest

Stock Option Plans for Startups vs. Profits Interest

I had a great conversation today with Kendall Kunz about using Profits Interest instead of Stock Options plans for startups. Well, the topic was broader then just startups. Tub the idea is that a Profits Interest functions similarly to an option agreement. It can also take advantage of the LLC corporate model vs. C Corp (if you don’t have significant number of investors).

 

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