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by SeoxyS 4120 days ago
One way to avoid the whole stock option / RSU mess is to structure your company as a C-corp that is wholly owned by an LLC, and give your employees membership units in the LLC. This is a very unusual setup and it'll take a good lawyer to help you get it right; but the benefits are huge for employees who own stock, because there are zero tax liability and zero purchasing price until the ownership produces a return.
2 comments

In some states LLC members are not allowed to take salaries. They can only take guaranteed payments, which have other tax implications
Are there any published references on this technique, or a law firm that is well-versed in it?
I don't know of any public resources on the topic, or of any law firms that are particularly adept at this. However, I have seen it done in practice.

I'd recommend talking to a law firm that's well versed in startup corporate law. The big firms Cooley and Orrick come to mind.