All in Venture Cannabis Blog

THE CHOICE-OF-ENTITY DILEMMA

A successful capitalist and well-regarded law professor, once quipped, “Any attorney who advises his client to form a corporation, instead of an LLC, should be disbarred for committing malpractice!”  It’s worth mentioning, that this heated proclamation came after a long dinner, which was served with a healthy accompaniment of wine. And while the inference of malpractice was clearly hyperbole, it drives home the point: why would a startup form as a corporation when an LLC provides the same protections and yet eliminates the bureaucratic limitations of a corporation?