Hacker News Reader

equifusedon Ask HN: I'm Contractor 0, now being offered equity--in an LLC. Can this work?

> will be taxable immediately to you even if you never buy the stock and the options expire worthless.

That's the picture I'm getting, but your way of putting it certainly drives the point home!

equifusedon Ask HN: I'm Contractor 0, now being offered equity--in an LLC. Can this work?

I think they mostly want to avoid the extra time and money and ongoing maintenance that go into C-corp-ness. Also, a change at this point will certainly have tax implications for the partners and the angels. Good or bad I don't know--more complicated, almost certainly.

equifusedon Ask HN: I'm Contractor 0, now being offered equity--in an LLC. Can this work?

Thanks, grellas. Looks like the plan needs to be revised.

equifusedon Ask HN: I'm Contractor 0, now being offered equity--in an LLC. Can this work?

Right, but what we really want is options, not proper stock. They don't want to make me a proper LLC member, and I don't really want to be one anyway.

Part of the idea is the equity-holding stuff won't become a tax event for me unless they do sell or buy me out, which is roughly how I understand options to work.