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Can an LLC adopt a stock plan?

Incorporation & entity structure

Not a stock plan as such, since an LLC has membership interests rather than stock. LLCs use profits interests or unit plans instead.

The mechanics and tax treatment differ from options, and the documents are less standardised. It is one of the practical reasons companies planning to grant equity widely convert to a C-Corp.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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