After doing some research, this is what I've come up with - it's better to start off as an LLC (they are simple to set up, avoid double taxation and still support multiple classes of stock if needed) and convert to a C-Corp later when we're ready to take funding (an LLC does not really allow for shareholders, so if we want outside investors, an LLC won't fly, in fact some VC firms have structures that do not permit them to invest in an LLC).
1. Does this make sense?
2. We're based in NYC, but I'm hearing that the cost of setting up an LLC can be 10x the cost of setting up a C-Corp. Any advice on the state to incorporate in? Why? (Assuming of course that we can incorporate in a diff state and work out of NYC)
1. Does this make sense?
2. We're based in NYC, but I'm hearing that the cost of setting up an LLC can be 10x the cost of setting up a C-Corp. Any advice on the state to incorporate in? Why? (Assuming of course that we can incorporate in a diff state and work out of NYC)