[ckoglmeier]

An LLC is a legal entity - that's the whole point. The owners (you) are only liable up to the investment made into the entity.

A few key differences: An LLC allows the owners to choose the setup for tax purposes (act like any other kind), commonly has pass through taxation and is only able to issue one type of stock, common. However, it provides all of the legal protections as that of a C Corp.

To my knowledge, investors prefer C Corps for two key reasons: 1) Preferred Stock 2) Company Structure (LLC's can setup however they wish, C-Corp is more restrictive and includes a board).

One option is having the LLC purchase stock in the C-Corp as a means of transferring assets later. Many investors have their investments setup as seperate LLCs (liability issues) and do their investing this way.