QUESTION
Can an LLC own stock options in a C Corp?
Asked on Jan 13th, 2016 on Business Law - California
More details to this question:
I am going to do consulting work for a startup and will be compensated in $ per hour plus options per hour. I am planning to create an LLC with my partner for this business and potentially other consulting work. I'd like the contract (compensation and options) to be with the LLC and not me personally. Is that possible and what are the tax implications?
1 ANSWER
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Yes, it is possible for an LLC to own stock options or stock in a corporation.
If the LLC is taxed as a partnership, then the tax consequences would flow through to the owners on the Form K-1.
Answered on Jan 13th, 2016 at 2:51 PM