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Why couldn't you start a new DE C corp instead of converting?


They insisted the previous corporation had to first be dissolved. I am not a lawyer, but I believe this is just standard practice. I suppose it's because there can be objections from investors in the original LLC if you take money in a new entity, and in very bad situations (which are probably very unlikely) that could lead to lawsuits. I think lawyers are just trying to do things properly to avoid these sorts of things.


in very bad situations (which are probably very unlikely) that could lead to lawsuits

The thing is, the more successful your company turns out to be, the more likely it is there'll be lawsuits.

Recent prominent case in point: Cruise Automation [1]

[1] http://www.strictlyvc.com/2016/04/17/a-strange-new-battle-be...




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