Is registering a foreign LLC associated with any disadvantages? It is, if you compare forming an LLC with forming a company of a different ownership structure. For example, registering an LLC costs more than registering a sole proprietorship or a partnership. An LLC is a less powerful instrument of attracting investments and raising funds in comparison to a corporation. There are some other LLC disadvantages but they are outweighed by the number and the nature of advantages that this form of company ownership has.