One of our early investors insisted we transition to a C-Corp "for tax purposes". We were later acquired via an asset sale. The acquirer refused to do a stock d

One of our early investors insisted we transition to a C-Corp "for tax purposes". We were later acquired via an asset sale. The acquirer refused to do a stock deal. We ended up paying an effective 61% tax rate federal+state on the exit. I really wish we would have stayed an LLC. However, all of Gust's points are valid if you successfully negotiate a stock sale.