Why Your LLC Might Be Costing You Funding (and How to Fix It)

Starting your business as an LLC is a smart move — it's affordable, easy to register, and offers limited liability without a mountain of paperwork. But as your company matures, that same simplicity can silently hold you back from the kind of funding and growth opportunities that fuel real scale.

The Problem?

Most institutional lenders, venture capitalists, and grant programs prefer or require corporate structures. Why? Because corporations (especially C-Corps) offer:

• Clear stock and ownership options

• Well-defined governance and legal protections

• Tax separation between business and owner

When you're structured as an LLC, you're often seen as a sole proprietorship with paperwork. That can limit your ability to raise capital, protect intellectual property, or bring on partners.

The Solution:

We help Laurus Group clients convert their LLCs to C-Corps the right way:

• State-level restructuring

• EIN and IRS alignment

• Updated operating agreements

• Governance and share structure templates

This shift isn’t about compliance — it's about becoming fundable. It opens the door to business credit, equity investment, and tax strategies that protect long-term wealth.

Pro Tip: Don't wait until you're applying for funding to restructure — by then, it might be too late.