When it is time for fundraising, is it possible to just create a new C-Corp, then sell the assets of the LLC to the C-Corp? Are there major tax implications? Is it possible to sell the assets for a $1? Or would that be in violation of some tax rule?
I believe the original trigger for converting to a C-Corp was the Peter Thiel investment.
Most likely, you would sell the assets of the LLC to the C Corp in exchange for some number of shares (valued at the pre-money valuation of the company) and then issue additional shares equal to the VC money such that the total value of the new C Corp is the post-money valuation.
Afterwards, the founders can distribute the shares and wind up the LLC.
The alternative is for the founders to sell the LLC to the C Corp for shares and then the C Corp can wind up the LLC.
[0] https://www.irs.gov/publications/p544/ch01.html#en_US_2016_p...