&quot;VCs&quot; is not some catch-all well-defined term. To say that all venture capitalists &quot;require&quot; you to be a C Corp is incorrect and further reinforces the very issue I&#x27;m trying to address here. There are lots of different types of venture capitalists. From large funds, to institutional investors, to individuals, and everything in between.<p>Some of them require C Corps. Some of them require S Corps. Some of them require a specific C Corp like one in Delaware. Some of them are just fine and dandy for LLCs. Some <i>prefer</i> LLCs. For all cases[1]: there are appropriate methods and paperwork to ensure parties can come to agreements.<p>Continuing to add comments to this site with phrases that characterize VCs as being a single entity is confusing and not helpful.<p>New founders have a <i>lot</i> to worry about. Whether they created the right type of company or not, is so far removed from initial worries and so often easily taken care of at later dates. I don&#x27;t think it&#x27;s helpful at all to continue to try and convince them that there is a wrong or right way to do things.<p>[1] - I dont have any examples where a business owner and an investor couldn&#x27;t come to an agreement when both parties wanted to work together.