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  • Phantom Stock

    Hello,
    Recently, a small company (S-Corp) that I've been consulting for offered to changed the agreement from sub-contractor to an owner of 'phantom stock'. From my research, it looks like this type of stock is a method of sharing profit without changing the equity structure of the company. My questions:
    Is this true?
    Do I gain any 'voting' rights?
    Any tax advantages to this method?
    Whats the reason for this approach vs. a simple profit sharing agreement?

    Thanks

  • #2
    Re: Phantom Stock

    That is correct. It is basically a contract to arrange payment or ownership. Make sure you have legal counsel review and sign off as some rights may or may not be enforceable.

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