This is wrong. You do not have to be a C Corp to accept investments. Not sure where or how this idea got started. There are even advantages to LLCs that some savvy investors <i>prefer</i> as a matter of fact. It more comes down to the source of the actual money in the fund than the fund itself.<p>Also they are quite easy to setup. Requiring a simple Internet form and a few checks written here and there.<p>Additionally it is extremely dependent on the LLC in question  as to whether switching will be difficult later on in any way. Sole member LLC with no additional equity holders? You can fill out a form.<p>EDIT: your edit is wrong too. Whether you switch it from &quot;investments&quot; to &quot;VC investments&quot; or provide a source to attempt to backup your falsehoods.<p>&gt; EDIT: I should have said very unlikely to raise VC investment even though it is technically possible to raise investment with most types of businesses such as LLC. [1]<p>We should be careful in how we continue to spread this common misinformation. It is not helping people who are actually new to this and trying to learn. The likelihood of landing VC investment has little to nothing to do with you being an LLC or not.<p>VC attorneys convert LLCs in their sleep. If they want to invest in only C Corps and you&#x27;re an LLC, between your legal and their legal: it&#x27;ll get worked out.