Let's say you have an idea that you want to start building in earnest, maybe with a partner, and you want to incorporate to gain all the benefits that entails.
Do you choose a C-Corp or LLC?
As far as I can tell:
C-Corp:
- More attractive to potential investors?
- Already in the "correct" form for many shareholders and future investment (see above).
LLC:
- Easier incorporation, tax filing, and day one operations.
- Lower cost of incorporation.
- Potentially a negative signal to investors? (Though some say that for most investors in the right company, they won't care that you have a step to convert to a C-Corp).
Convince me one way or another? I suspect that my partner is more interested in forming an LLC, and is also potentially spending too much time on things like incorporation before validating the idea.
Do you choose a C-Corp or LLC?
As far as I can tell:
C-Corp: - More attractive to potential investors? - Already in the "correct" form for many shareholders and future investment (see above).
LLC: - Easier incorporation, tax filing, and day one operations. - Lower cost of incorporation. - Potentially a negative signal to investors? (Though some say that for most investors in the right company, they won't care that you have a step to convert to a C-Corp).
Convince me one way or another? I suspect that my partner is more interested in forming an LLC, and is also potentially spending too much time on things like incorporation before validating the idea.