Would an LLC that is filling as an S-Corp be eligible for funding from angel investors and venture capitalists?

I would like to start my business as an
LLC filing as an S-Corp but I am looking
to acquire start-up funding from an
angel investor or a venture capitalist
firm. Would I be able to secure funding
operations under this tax status?

Asked on December 10, 2018 under Business Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Tax status has nothing to do with your ability to secure funding from angel investors or venture capitalists--people can invest in your business regardless of your tax status or how you file (just make sure you disclose it accurately to them, so you don't end up committing fraud by misrepresenting a critical fact).

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