The issue with LLC ownership is that it becomes much harder to kick out someone later on [or to transfer ownership interests], especially if you are onboarding

The issue with LLC ownership is that it becomes much harder to kick out someone later on [or to transfer ownership interests], especially if you are onboarding some unsavory characters. As far as ownership is concerned, with an LLC the payments do not have to be proportional to the ownership percentage. This is one way in which the LLC differs from the S-corp, because the S-corp requires that payouts are proportional to ownership stake. Hence, a small ownership stake in an LLC can mean diddly squat.