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I would also like to point out that most Angel Investors/VCs won't invest in LLCs/S-Corps. I think this is because of preferred options... I'm sure someone else
by jonpaul 16y ago
I would also like to point out that most Angel Investors/VCs won't invest in LLCs/S-Corps. I think this is because of preferred options... I'm sure someone else with actual experience could chime in.
- cemerick 16y agoHeh, and most LLCs/S-Corps won't bother looking for Angel/VC investment. ;-) That said, AFAIK converts (which seem to be getting popular these days, at least among sensible angels) are perfectly compatible with typical S corp structure.
- jhugg 16y agoMy company just converted from an LLC to a C-Corp. The result was delicious sausage, but the making of said sausage is not something we'd repeat if given a choice.
- fnazeeri 16y agoVCs/Angels don't invest in LLCs mostly because of UBTI http://en.wikipedia.org/wiki/Unrelated_Business_Income_Tax http://en.wikipedia.org/wiki/Unrelated_Business_Income_Tax