If you are in a flyover state, learn about venture tax credits and other startup investment incentives. You can often get investors a state tax credit that is up to 25% of the amount they invest. For angels, this is basically a 25% discount on their investment, and substantially reduces financial risk. Also, at least until you take in institutional money, being an LLC can unlock loss cary-forwards for your investors.
+1 this helps even if your angels are out of state. At least in Kansas, they can sell the tax credit to someone in-state for maybe 80% of its face value.
