[ghaff]

In a (US) Limited Liability Partnership, partners get a share of the firm's profits--while still having their individual liability protected in a similar way to a corporation. In a large firm, you probably have multiple levels of partners. While I'm hardly an expert, I imagine that this structure would probably limit the options for raising capital.

[gruseom]

Presumably you could set the details up however was necessary to satisfy investors. What I'm really interested in is the conceptual structure. Joining as an associate, proving yourself, and working your way to a possible partnership seems intuitively like a more rational way to attract and reward talent than the employee model is. I don't like the idea of being someone's employee. I'm fine with the idea of being their partner. In fact, if it's someone I respect, that's a goal worth working for. My thesis is that lots of creative people feel this way and more will.

[lkrubner]

LLCs vary by state in the USA. Some states allow almost complete freedom regarding the structure of the business entity. I lived in Virginia for several years. My friends and I launched a business in 2003. We decided to go for a custom LLC structure. We spent about $5,000 on lawyer fees, but we got a structure that allowed us to sell shares in our LLC. It was a hybrid structure, partly a C form, partly a normal LLC.

[absconditus]

LLPs are not LLCs.