Correction. You can have multiple kinds of LLC units or shares defined. But LLC flexibility can be an impediment, since new classes creation will involve sign o

Correction. You can have multiple kinds of LLC units or shares defined. But LLC flexibility can be an impediment, since new classes creation will involve sign off / agreements with existing unit holders, and restructuring the existing LLC membership structure. It all boils down to, what are your likely financing structures, if any, and how likely will you later on need to become a C Corp. Be wary of subsequent entity conversion tax issues for owners and entities as well. Here's a survey of only some of the issues: LLC, C corp. and S corp. Choice of Entity - Startup Law Blog - Joe Wallin, Davis Wright Tremaine LLP (undated, but apparently 2012) http://www.startuplawblog.com/choice-of-entity/ http://www.startuplawblog.com/choice-of-entity/