If you are a Limited Liability Company (LLC) and raise equity on Wefunder, you will be charged an annual fee for tax maintenance purposes. As an LLC, you must provide K1s to your members every year. Because Wefunder uses Special Purpose Vehicles (SPV LLCs), we must receive your K1 and file K1s for the SPV’s members (i.e., your investors). This process is time-consuming and requires the assistance of a Certified Public Accountant (CPA). Although we do not want to discourage LLCs from raising equity, we must charge fees to make this process sustainable. 

Note that for convertible instruments (SAFEs and convertible notes), our fees only begin when you start sending K1s to the Wefunder SPV, which typically occurs once the SAFE or note has converted into units of your LLC.