Why your startup should be a Delaware C-Corp, not an LLC

Re:Why your startup should be a Delaware C-Corp, not an LLC by loourr on Wednesday March 15, 2017 @01:12PM (#13877785)

He forgets arguably the most important consideration - taxes.

C-corps have double taxation and LLCs do not. For every dollar you pay yourself from your cooperation you'll have to pay on the order of 15% more.

If you plan to never make money or just make money by raising money then a C-corps is for you. Other good argument is if you plan on going public. Otherwise strongly consider the tax implications before starting a C-Corp.

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Re:Why your startup should be a Delaware C-Corp, not an LLC by msf5042 on Wednesday March 15, 2017 @03:10PM (#13878859)

If there's a chance you will want to be raising funds or giving out equity than it might be cheaper to form as a C-Corp, temporarily elect S-Corp status, and elect to remove that S-Corp status when need be.

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Re:Why your startup should be a Delaware C-Corp, not an LLC by andrew_gust on Wednesday March 15, 2017 @01:43PM (#13878124)

The post addresses this, but double-taxation doesn't usually apply very much to early-stage high-growth startups—most high-growth startups spend their positive cashflows for growth and thus don’t have any positive net income to pay taxes on.

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Re:Why your startup should be a Delaware C-Corp, not an LLC by charlesdm on Wednesday March 15, 2017 @05:39PM (#13880051)

If you're raising investment and burning through money, you won't be paying taxes anyway, so it doesn't really matter.

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