Monday, June 28, 2010
How few people think ahead
I recently came across a start-up which, although knowing that it would be seeking investors, set itself up as an LLC. It is virtually impossible to have multiple shareholders in an LLC. Any company which seeks them has to be a C-corp, yet converting from an LLC to a C-corp is both time-consuming and expensive. So, thinking ahead would suggest that you set it up as such. It is the same with many things, we do not think about the ultimate consequences of steps we take.