Another downside to incorporating as an LLC is that it makes it harder to try someone out when you are considering trading equity for services. If you want to

Another downside to incorporating as an LLC is that it makes it harder to try someone out when you are considering trading equity for services. If you want to see if a lawyer is going to be a good fit, or if a SEO person is going to really help you out, there is no immediate corrolary to vesting in an LLC. So it makes hiring fast/firing fast difficult to do. You don't want a large chunk of your company held up by someone if it turns out the designer you gave 2% in leui of cash to design your UI is actually a complete flake.