Re:Why your startup should be a Delaware C-Corp, not an LLC
by andrew_gust on Wednesday March 15, 2017 @12:08PM
(#13877093)
Hmm, I'm not sure that's accurate. What would you be converting to if your company was already a C-Corp?
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Re:Why your startup should be a Delaware C-Corp, not an LLC
by tptacek on Wednesday March 15, 2017 @12:11PM
(#13877113)
A C-Corp with the structure your venture capital firms expect.
Re:Why your startup should be a Delaware C-Corp, not an LLC
by koolba on Wednesday March 15, 2017 @01:04PM
(#13877694)
There may be more structure required but starting off from a C corp obviates the need to transfer control of assets (particularly intangible ones like copyrights to source code).
Re:Why your startup should be a Delaware C-Corp, not an LLC
by tptacek on Wednesday March 15, 2017 @01:15PM
(#13877816)
You're paying a substantial amount of money up front to hypothetically mitigate a hypothetical future expense that only occurs at the point where cash flow (at least on the order of "covering legal expenses") stops being an issue.
That doesn't sound like a good deal to me, but that's just, like, my opinion, man.
Re:Why your startup should be a Delaware C-Corp, not an LLC
by koolba on Wednesday March 15, 2017 @01:22PM
(#13877885)
Quantify substantial.
Last time incorporated a Delaware C corp it cost me a couple of stamps and filing fees. I don't remember exactly but it definitely wasn't an obscene number. The annual upkeep, including franchise tax and registered agents, is around $600.
If you're not going to have a nexus in another state (i.e. No physical location or storefront) then that's peanuts for having a corporate vehicle in the the state for corporate vehicles.
If the cost difference of a couple hundred bucks is enough to break your bank, I'd suggest finding a 9-5 job rather than incorporating.
Re:Why your startup should be a Delaware C-Corp, not an LLC
by amyjess on Wednesday March 15, 2017 @04:35PM
(#13879529)
Can you elaborate?
Operational and structural details like this have always fascinated me.
Re:Why your startup should be a Delaware C-Corp, not an LLC
by andrew_gust on Wednesday March 15, 2017 @12:17PM
(#13877169)
Part of the premise of Gust Launch is that it's far simpler to start this way, as a Delaware C-Corp with expected structure, than it is to convert later. The conversions range from easy to extremely painful but they're almost all avoidable.