"investors rarely, if ever, fund startups founded by a solo entrepreneur" I'll add another anecdote/datapoint to this: I was the stereotypical one-guy-in-the-b

"investors rarely, if ever, fund startups founded by a solo entrepreneur" I'll add another anecdote/datapoint to this: I was the stereotypical one-guy-in-the-basement when I got my first Fortune 500 customer. In order to be paid, I needed to be registered as a vendor with them and they needed an EIN (Employer ID Number). I was concerned that I would lose their business if they found out I was a Sole Proprietor, so I created an LLC and gave them that number the next day. I wouldn't be surprised to find out that there are many single-member LLC's and S-Corps who only have that business organization for similar reasons.