My startup has one or more equity partners that, at this time, prefers to remain anonymous. Does an LLC have any disadvantages over a Corp in this regard? The anonymous will not be on the board if we make a corp.
I know, talk to a lawyer. Soon...
A Delaware LLC has an advantage over a C corp because it does not require disclosure (to the state) of its members). If it elkects to be taxed as a C Corp (some big disadvantages) it will not have to file Schedules K-1 with its tax return which give away the identity of its members.