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I'm currently trying to decide if my startup should be an LLC or a Corp. (would probably make the S election for either case). This will be formed in Massachusettes, USA.

From what I've been reading online, it is easy with a C-Corp to make shares vest over time. But it looks like, to me at least, that an LLC needs to be owned by everybody at the start. You can't have a percentage and then vest.

Is this right?

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Time to call an attorney. – JeffO Jan 27 '12 at 17:29
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ye$, I know that that is the next $tep, ju$t trying to avoid it for now... – Paul Cezanne Jan 27 '12 at 18:04
Also, when you do solve this problem for yourself via your lawyer, do postback here. – Sid Jan 27 '12 at 18:27
But of course! This could take months though, not a priority for me, just in the thinking and wondering stage. That's the wondering how to pay for it stage! – Paul Cezanne Jan 27 '12 at 20:08

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Not so. It is true that an LLC issues interests as a percentage of 100%, but you can have people get membership interests vesting over time with concomitant dilution to the existing members. In fact, it's quite common.

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