Interesting approach, Ryan, and thanks for taking on this “urban legend!” A couple of questions:
1) What about the tax consequences of LLC to C Corp conversion that you mention investors will require? How does that balance out the cost and other inconveniences of converting or forming a C Corp to begin with?
2) Also, is there a workaround to allow members to take salaries from an LLC? Or how would officers who are also members (i.e. at least the founding team) be compensated if they can’t be employees?
Would love your insights on this, as this subject comes up frequently with clients and mentees.