We've reached a point where we need either hard capital or strategic hire capital and as an LLC it seems like it is much harder to grant capital (either immediately or in a vesting process).
Also, the pass through tax situation (we filed a 2553 for the LLC) really hurts us because we tend to drain the bank account at the end of the year so that we're not hit with huge personal tax on money we don't receive. Then the business suffers cash flow issues in January.
It seems that a c-corp -- with it's double taxation issue -- might have been a better choice for us.
So, the options as I see it are to convert the entity to a c-corp (how?) -- or start a new c-corp that becomes a holding company for the llc. Due to the pain in setting up vendor agreements with the majority of our clients, I lean toward the latter plan. It also allows us to "buy" the assets of our individual companies (we all had individual companies before we started this business) in order to use them as tools for exploiting different markets.
Any thoughts or experiences to share?