When a startup or small business first launches, it is easy to issue shares (almost) tax-free to the company founders. When a shareholder or LLC member receives shares in exchange for his or her labor, or “sweat equity,” the legal and tax issues are a bit more complicated.

In this fast-paced, entertaining presentation, you will learn: whether “sweat equity” workers should be treated as employees or independent contractors; the use of restricted stock, options, warrants and other equity securities in corporate “sweat equity” arrangements; the use of profits interests in an LLC; compensation that is contingent upon change in control or other triggering events; the Section 83(b) election; and the issues involved when a “sweat equity” partner is not a U.S. citizen.