When I did it, I was told in short by legal that "at this point it is a red flag if you don't do it." The original reasons may have been tax based or precedent

When I did it, I was told in short by legal that "at this point it is a red flag if you don't do it." The original reasons may have been tax based or precedent based, but at this point it is also because that's the default that VC is used to