https://www.investopedia.com/terms/p/profits-interest.asp https://www.investopedia.com/terms/p/profits-interest.asp In some detail. There's one thing that some

https://www.investopedia.com/terms/p/profits-interest.asp https://www.investopedia.com/terms/p/profits-interest.asp In some detail. There's one thing that some of these articles claim that isn't quite right. Because this arrangement technically makes employees in a partnership, per the IRS this means they have to pay their own side of social security and isn't entitled to e.g. health insurance. It turns out the department of labor has issued conflicting guidance: if I am, for all intents and purposes, employed by a company, then I am to be paid as a W2 employee and am entitled to benefits. My company has chosen to follow the department of labor's guidance.