The Advanced Tax Strategy Series: Equity Incentives in Partnerships and LLCs: Structuring Profits Interests, Capital Interests, and Options

Matthew Foreman and Angela Stockbridge will discuss profits interests, capital interests, options for entity interests, and phantom equity/unit appreciation rights. We will discuss how these awards operate economically and where common misunderstandings arise. The discussion will focus on the tax treatment by award type, the role of Section 83 and 83(b), Section 409A pitfalls, and the key deal terms and implementation steps that keep these arrangements compliant, defensible, and aligned with the parties’ economic intent.