Lee and Jan are debating whether to use an LLC or corporate form for a new business.Major advantages of an LLC over a corporation include the tax status of an LLC,the fact that an LLC is easier and less expensive to set up than a corporation,and the fact that venture capitalists generally prefer to invest in LLCs over corporations.

Question

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Venture capitalists generally prefer to invest in corporations over LLCs due to the structure and flexibility of issuing stock, which is more aligned with their investment strategies.

Lee and Jan Are Debating Whether to Use an LLC