Editor's note: Alex Katz is partner and CFO with ff Venture Capital,?an institutional investor in seed-stage companies.? Many venture-capital firms and other investors insist on investing only in corporations in order to avoid the complications that may flow from an investment in an LLC. As a result, many founders start their businesses as a corporation before the receipt of VC funding.?In so doing, they are giving up what could be a substantial tax opportunity.Source: http://feedproxy.google.com/~r/Techcrunch/~3/U-nMto38etU/
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