Start Here: Limited Liability Companies (LLCs) and Employee Ownership

Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular because of their simplicity and flexibility. Many LLCs want employees to have an ownership stake in the company, and they have a wide array of options.

A Detailed Overview of Employee Ownership Plan Alternatives

Contents Introduction Employee Stock Ownership Plans (ESOPs) Stock Options Employee Stock Purchase Plans Restricted Stock, Phantom Stock, and Stock Appreciation Rights 401(k) Plans Employee Ownership and Employee Motivation

Employee Stock Options Fact Sheet

Traditionally, stock option plans have been used as a way for companies to reward top management and "key" employees and link their interests with those of the company and other shareholders.

Equity Incentives in Limited Liability Companies (LLCs)

Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular. LLCs are similar in many ways to S corporations, but ownership is evidenced by membership interests rather than stock.

How to Choose an Employee Stock Plan for a Closely Held Company

Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan.

How to Choose Employee Ownership Consultants

Hiring the experts to help you manage the creation of an employee ownership plan will cost money, but the right experts will save you the hassle, time, and unwarranted risk of trying to figure this out yourself. Contents

Phantom Stock and Stock Appreciation Rights (SARs)

For many companies, the route to employee ownership is through a formal employee ownership plan such as an ESOP, 401(k) plan, stock option, or employee stock purchase plan (ESPPs—a regulated stock purchase plan with specific tax benefits).

Restricted Stock and Direct Stock Purchase Plans

Restricted stock and direct stock purchase plans have become increasingly popular as ways to compensate employees. Often used just for key employees, they also can be used more broadly.

Sharing Equity in a Startup or Established Entrepreneurial Venture

It's easy to get lots of technical information about stock options, restricted stock, stock appreciation rights, phantom stock, performance shares, and other equity sharing tools. It's also easy to find guidelines for executive ownership of equity in public companies.