Stock Options Stephen W. McVearry Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC Reston, VA 703 / 464-4800 smcvearrey@ mintz.com mintz.com		Is it possible to grant stock options to employees of a limited liability company? Yes, sort of. Since a limited liability company (LLC) does not issue stock to its owners, LLCs do not have stock option plans in the traditional corporate sense. But, LLC's may adopt equity incentive plans and offer employees non-qualified options to purchase equity interests in the LLC. (Note: the benefits of incentive stock option plans under Internal Revenue Code Section 422 are not available to LLC's and their owners.) In addition to equity or unit options, LLC's can offer phantom units, unit appreciation rights and profits interests. Income tax treatments vary.

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