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5. Might the business eventually become publicly traded?

The only business form that can be publicly traded is a corporation. It is possible for a business to start in another form, then be converted to a corporation. A popular initial form for a business of this type is an LLC. While an unlimited number of members can be added to an LLC, this will eventually dilute controlling interests and become unwieldy. Conversion to a corporation will allow the company to decide what types of shares it wishes to issue, and to whom.





1. Will the business be heavily dependent on investors for its capital?


2. What kind of investors is the company seeking?


3. What business forms are most attractive to investors?


4. Is a business goal to raise investment capital without giving up control of the company?


5. Might the business eventually become publicly traded?






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