[andrew_gust]

If they don't want to grant equity or take investment, sure. But doing one of those two things means the legal costs of starting with an LLC (which aren't standardized) substantially outweigh any tax savings, and almost no startups prior to that point have positive cash-flow anyway so taxed profits aren't much of an issue.

[brianwawok]

LLCs can grant equity just fine. Please don't spread FUD.

[andrew_gust]

Sure, but there isn't an out-of-the-box mechanism to do that. You have to create a way to grant equity, which means you'll need to pay a lawyer—and hourly rates add up quick.

[staticautomatic]

Still FUD. Plus, making equity deals without consulting a lawyer is a bad idea regardless of your corporate structure.

[brianwawok]

Exactly. Too many people trying to push all starts into a Delaware X corp for their own gain. Not great blanket advice for everyone, do your own research.

[meesterdude]

i agree, but it's not just a tax matter - there are also significant organizational and operational implications to be had.