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Tax

Jan. 25, 2017

Startups should reconsider organizing as LLCs

Recent tax law developments should cause entrepreneurs to re-think a few common assumptions. By Peter J. Elias and Tim Curry

Peter J. Elias

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By Peter J. Elias and Tim Curry

It is often said that any new startup business that is planning on raising equity investments from the private equity/venture capital world generally needs to be organized as a corporation, rather than as a limited liability company. Although the merits of this statement are debatable, the reasons typically cited for this statement are that fund investors only invest in corporations, preferably Delaware, and that LL...

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