3 ms·

"The investor must not be a corporation" seems key. Do angel investors really invest out of their own bank accounts or do they form LLCs for this?

• danielayele 16y ago
  angels usually invest as individuals or via LLCs and super-angels and VCs are usually structured as partnerships so the exclusion won't apply to most active early stage investors.
  • anamax 16y ago
    > angels usually invest as individuals or via LLCs LLCs are corporations. I wonder what the bill actually says.
    • _pius 16y ago
      LLCs are not corporations, at least not in the United States.
      • anamax 16y ago
        My mistake - I thought that the limited liability aspect was defining of corporations.
• WildUtah 16y ago
  Pass-through entity investors such as S Corporations, partnerships, and LLCs have special provisions to share the advantages with their owners. Read the law for details; the accounting could get complicated.