Incentive for LLC?!?!

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Incentive for LLC?!?!

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abc1111

posts: 88

Apr 27, 2008 3:47 PM ET Quote Report Abuse

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I need to motivate friends/new employees currently working for my LLC. We have no funding, no stock option plans.

Any idea on how to motivate them? Some examples are:
- Contract showing a lump sum will be given when milestone is reached.
- Asking them to count their hours so that they can be transferred to stock option later on when I convert the company to a C-corp.
- Other suggestions???

Please let knowif you have any idea. It is hard for people to work for free, and I can understand that!

05mustang

posts: 36

Apr 28, 2008 6:46 PM ET Quote Report Abuse

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I like the contract idea. They could basically be consultants that get paid based on achievement of certain company milestones. It shouldn`t be that hard to do. You may want to check into the tax implications however, because if you`re directing their day to day activity (versus just giving them targets/goals), tax law will treat them as your employees regardless of what you call them. That means you could be on the hook for employment taxes.

I know of a smart business lawyer that can help if you need more assistance.

Best of luck!

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Incentive for LLC?!?!

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