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| | Ask HN: LLC to c-corp? | |
1 point by zaidf on Dec 29, 2009 | hide | past | favorite | 4 comments
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| | I'm about to form an LLC for my startup so we can sign our first contract with a client. Right now I am not leaning towards raising $. There is probably a 25% chance that I will seek funding in the near future. Does anyone know how much of a headache it would be to change from LLC to a c-corp in the future? Are you looking at hundreds or thousands more in lawyer fee for the change? |
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However, why would you need a c-corp to accept investment? An LLC provides a lot more flexibility and you'd just have to redo you Operating Agreement.
That flexibility comes at a price, an investor can and likely will insist on modifications that provide him greater protections/rights/whatever that he would have been able to get with an investment in a c-corp. I've worked for one promising company who's life was cut short when its devil investors abused various provisions they had put in the Operating Agreement to gain complete control (all of nothing, we all resigned, but they didn't seem to mind).