How a Business Hired a Lawyer to Draft a Phantom Stock Agreement in Washington

In 2024, a business in Washington sought assistance with drafting a phantom stock agreement to facilitate the formation of an LLC with three owners across different states. The client aimed to implement a phantom stock plan that would incentivize participation from community members and employees, defining distinct roles for operators, creatives, and community members in relation to equity distribution. Specifically, they planned to grant minimal phantom stock units to community members to encourage engagement while compensating operators through the LLC structure. As a result, the client received seven proposals from licensed attorneys, with flat fee bids ranging from $699 to $3,350, all submitted in order to meet the requested deadline of less than one week.