The S-Corporation is the entity of choice that helps venture capitalists raise investment capital.

Question

Quizplus · Accepted Answer

Venture capitalists typically invest in C-Corporations or Limited Liability Companies (LLCs) because they provide more flexibility for ownership and have fewer restrictions on stock, making it easier to raise capital. S-Corporations have limitations on the number and type of shareholders, making them less attractive for venture capital investments.

The S-Corporation Is the Entity of Choice That Helps Venture