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by gumby 2587 days ago
I don’t see the point of an LLC if you plan to have an outside investor. The LLC will have to be converted to regular corporation (typically. C Corp) anyway.

The LLC makes it easy to pass profits through but if you don’t have any yet...what’s the point?

2 comments

A Delaware LLC can be easily converted to a Delaware C. During early stages, an LLC is easier to manage with less reporting and paperwork. An LLC gives limited liability and a receptacle for IP rights. While taxes at this point won't be an issue, they're simpler.

https://www.nolo.com/legal-encyclopedia/converting-llc-corpo...

https://www.delawareinc.com/blog/how-to-convert-your-llc-to-...

Even if you're pre-investment & zero profit, the LLC gives limited liability to owners, usually at less cost than a corporation.

And if you need to convert, it will be easier to convert an LLC to a Del. C. than to create a Del. C. based on your co-mingled personal and business records.