- You will find a number of angel investors happy to invest in LLC's (depending on the stage and complexity of the funding round). While it's true that some investors require a more complex structure, the blanket statement that it's "required" is just wrong. It can also be destructive. There are REAL benefits to an LLC for a pre-revenue startup.
- Place of incorporation. I've never had an investor care about the state we've incorporated in. There are obvious tax implications, but it's often easier and cheaper to just do the paperwork in your state. It really just depends.
Points of emphasis:
83b election: This is SUPREMELY important, and applies to anyone attempting to invest equity (under any legal structure). Without properly handling the 83b you run into incredibly onerous tax issues. Learn about it and do it when you incorporate.