HOW is forming a corporation or LLC important in attracting investors?
Investors, in addition to a suitable return on their money, want tangible, legal evidence of their investment (their part of ownership) in your enterprise. Stock certificates are really the only way to accomplish this. Serious and savvy investors are far less likely to invest in a “project” or an “idea” without the stock ownership structure in place. If you approach or are approached by an investor, have that structure and your business plan ready.