LLCs offer advantages for university start-ups, but beware of tax implications

摘要

The acronym "LLC" has become an easily recognizable term in the business community, but while these entities certainly have come into favor among entrepreneurs, limited liability companies have not yet become a staple in tech transfer. LLCs certainly offer significant advantages in some respects for university TTOs, and many are being formed in the world of faculty start-ups. For example, Jeffrey Dunbar, director of the University at Buffalo's Office of Science, Technology Transfer and Economic Outreach, tells TTT that "three out of five" of its current start-ups are LLCs. And Robert B. McGrath, PhD, senior associate vice provost in Drexel University's Office of Technology Commercialization, reported that 50% of his school's start-ups are now LLCs.