Phantom stock agreement template: Fill out & sign online

Here's how it works

01. Edit your llc phantom equity plan sample online

01. Edit your phantom equity plan sample online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send phantom equity agreement llc via email, link, or fax. You can also download it, export it or print it out.

The best way to edit Phantom equity plan sample in PDF format online

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

Adjusting documents with our feature-rich and intuitive PDF editor is simple. Adhere to the instructions below to complete Phantom equity plan sample online easily and quickly:

Log in to your account. Sign up with your email and password or create a free account to test the service before choosing the subscription.
Import a document. Drag and drop the file from your device or add it from other services, like Google Drive, OneDrive, Dropbox, or an external link.
Edit Phantom equity plan sample. Easily add and underline text, insert images, checkmarks, and signs, drop new fillable fields, and rearrange or delete pages from your paperwork.
Get the Phantom equity plan sample completed. Download your adjusted document, export it to the cloud, print it from the editor, or share it with others via a Shareable link or as an email attachment.

Make the most of DocHub, the most straightforward editor to rapidly manage your documentation online!

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Contact us

How is Shadow Stock taxed?

For both phantom stock and SARs, employees are taxed when the right to the benefit is exercised. At that point, the value of the award, minus any consideration paid for it (there usually is none) is taxed as ordinary income to the employee and is deductible by the employer.

How do you avoid 409A with a phantom stock plan?

It is possible to create a phantom stock plan that avoids the application of 409A rules. The key requirement would be to (a) use cliff vesting (any incremental vesting must trigger immediate payment), and (b) pay benefits within 2½ months of the end of the year in which the awards vest.

How do phantom equity plans work?

A phantom stock plan is an employee benefit plan that gives selected employees (senior management) many of the benefits of stock ownership without actually giving them any company stock. This type of plan is sometimes referred to as shadow stock. Rather than getting physical stock, the employee receives mock stock.

What is a phantom equity plan?

In an effort to motivate and retain key employees, some privately-held employers create phantom equity plans where the employees are given many of the benefits of stock ownership without actually being given any stock in the company.

Is phantom stock the same as equity?

A phantom stock plan is an employee compensation plan in which an employee is offered \u201cphantom shares\u201d that track the value of the company's actual stock. It's important to highlight that phantom shares are not actual equity, though their value does rise and fall in accordance with the value of the company's stock.

phantom stock agreement sample

phantom shares in private company phantom equity plan llc phantom stock plan s corporation phantom stock plans pros and cons phantom stock for non-employees phantom stock plan accounting treatment phantom equity vs profits interest phantom stock plan tax treatment

Related forms

be ready to get more

Complete this form in 5 minutes or less

Get form

Can an S Corp have phantom stock?

Consequently, an S corporation may have a phantom stock plan without terminating its S corporation election. To avoid losing the "S election," the phantom stock plan must be structured carefully. Some of the criteria for an effective phantom stock plan for an S corporation includes: Liquidation rights must be limited.

Is phantom equity the same as profits interest?

Phantom Equity (Unit Appreciation Rights) One of the primary advantages of phantom equity is that its holders can still remain W-2 employees of the LLC, whereas holders of capital interests and profits interests are both considered \u201cpartners\u201d for tax purposes and, thus, receive a K-1 instead of a W-2.

How is phantom equity taxed?

As the phantom stock units become vested, the value of the phantom stock units is includible as wages subject to FICA taxes. This is the case even though the amounts are not subject to income tax until actually paid to the employee.

Is phantom stock deferred compensation?

A phantom stock plan is a deferred compensation plan that awards the employee a unit measured by the value of a share of a company's common stock, or, in the case of a limited liability company, by the value of an LLC unit. However, unlike actual stock, the award does not confer equity ownership in the company.

How is phantom stock paid out?

As described, phantom shares are usually redeemed in cash\u2014the payment being treated like a bonus. However, should the plan agreement allow it, the payment obligation may be satisfied by distributing actual stock to the employees. A phantom stock plan must be supported by more than a verbal commitment.

Get the up-to-date phantom equity plan sample 2024 now

Here's how it works

The best way to edit Phantom equity plan sample in PDF format online

Complete this form in 5 minutes or less

Got questions?

How is Shadow Stock taxed?

How do you avoid 409A with a phantom stock plan?

How do phantom equity plans work?

What is a phantom equity plan?

Is phantom stock the same as equity?

Complete this form in 5 minutes or less

People also ask

Can an S Corp have phantom stock?

Is phantom equity the same as profits interest?

How is phantom equity taxed?

Is phantom stock deferred compensation?

How is phantom stock paid out?

phantom stock

Try more PDF tools