May an LLC establish the Equivalent of a Stock Option Plan

[Guest McElroy]

I seem to recall that an LLC can establish the equivalent of a stock option plan for its employees, though I don't recall where I read that. Any thoughts? Thanks.

[Kirk Maldonado]

Is the LLC taxed as a partnership or as a corporation?

[IRC401]

Yes, an LLC taxed as a partnership can

establish the equivalent of a non-qualified

(non-ISO) stock option plan (but do you really

want one)?