Can LLC's Sell Stock? What Are The Disadvantages Of LLC's?

Answer 1

Yes, LLCs can sell stock (although a correct term is "units of membership"). The disadvantage of LLCs... well, from whose standpoint?

From the standpoint of managing members, one possible disadvantage is that LLC is a relatively new form of business organization with relatively little case law around it and thus it can potentially offer weaker (compared to a corporation) protection of managing members' personal assets in the event of bankruptcy. This is why some LLCs are formed with a corporation as a managing member.

From the standpoint of non-managing members, investment in an LLC does not give them a vote in running the company; their rights are similar to those of limited partners in a limited partnership.