[tptacek]

People say this every time the topic of incorporation comes up. It's true: if you take funding, they're going to tear up your existing corporate structure and rebuild it. This argues for keeping your pre-funding structure as simple as possible. But what's not true is that you'll get passed up (for anything) because you're already set up as an LLC. If your pitch is so flimsy that $1000 of legal work kills a deal, you never had the deal to begin with.