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The type of consultancies and firms which actually pay out profit based on equity are usually LLP's / partnerships (part of the reason why "Partner" is a title
by somethingAlex 5y ago
The type of consultancies and firms which actually pay out profit based on equity are usually LLP's / partnerships (part of the reason why "Partner" is a title in finance, law, etc.
Tech companies are usually corporations (often C corps in the startup world.) What equity gets you in the two scenarios is completely different.
- cascom 5y agoSorry, the company type has (LLC, LP, LLP, c-Corp, s-Corp, etc) has literally nothing to do with that. Tech start-ups are typically incorporated as c-corps as their structure makes it easier to grant options, startups don’t want to make tax distributions if they make money, LLCs can’t issue preferred shares, and s-corps can’t have more than 100 shareholders, etc. just to name a few. No one at Cargill or Bloomberg thinks twice about whether the equity is in a c-Corp to LP (all else’s being equal)