You can have an LLC taxed as an S-Corp, an LLC taxed as a C-Corp, or an LLC taxed a pass through. Anyone who says an LLC is taxed in a particular way is way over simplifying to the point of confusion.
But, to over simplify on my own, Delaware is popular because it has a history of protecting shareholders over management. The movie Wall Street exists because in the 80s, companies tried to protect themselves from investors -- and Delaware stuck with shareholders firing management (not entirely, but significantly). In theory, investors may pay a bit less if you're in a state without that track record.
But, there are plenty of exchange-traded LLC securities, so it's not a bar or ban to fundraising.
You can have an LLC taxed as an S-Corp, an LLC taxed as a C-Corp, or an LLC taxed a pass through. Anyone who says an LLC is taxed in a particular way is way over simplifying to the point of confusion.
But, to over simplify on my own, Delaware is popular because it has a history of protecting shareholders over management. The movie Wall Street exists because in the 80s, companies tried to protect themselves from investors -- and Delaware stuck with shareholders firing management (not entirely, but significantly). In theory, investors may pay a bit less if you're in a state without that track record.
But, there are plenty of exchange-traded LLC securities, so it's not a bar or ban to fundraising.