Angel investing: LLC vs s/c corp?

Dell / Eng
cmpxch

Go to company page Dell Eng

PRE
EMC Corporation
cmpxch
Sep 8, 2018 4 Comments

Question to other angel investors .. do you care if the start-up is LLC or s/c corp ? LLC seems unappealing due to k1 tax filing and it doesn't seem like they're attractive for VC funding .. for context, 5 year+ investment horizon with target of acquisition rather than IPO. Thanks for your insights!

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TOP 4 Comments
  • VMware / Product
    lRQQ72

    Go to company page VMware Product

    lRQQ72
    If you are asking this, you should not be an angel....
    Seriously!
    Unless you are investing into friends lifestyle businesses that gets you feel good, never invest into anything but c Corp. It shows how little the founder knows...
    Sep 13, 2018 1
    • Dell / Eng
      cmpxch

      Go to company page Dell Eng

      PRE
      EMC Corporation
      cmpxch
      OP
      Hey that's fair and that has been my attitude so far but I'm willing to put the question out there and see if anyone disagrees. In this case they started out as c corp so they got my attention and I'm eager to invest but now they flipped to LLC so I'm out..
      Sep 14, 2018
  • New
    ulike

    New

    ulike
    If you are profitable, s-corp. Otherwise LLC is easier to form and less upkeep each year.
    Sep 8, 2018 1