Re:Ask HN: C-Corp or LLC for idea stage startup?
by JohannMac on Monday December 19, 2022 @01:06PM
(#34055336)
If you are self funding, and/or funding from friendly, unsophisticated investors initially, consider first an S-Corp (that’s just an IRS election) then transition to C when you have your first professional funding and need multiple classes of stock. Easy taxes, your portion of the losses just go on your 1040. Only a single class of stock is allowed though thus the transition when you take investment from professional investor.
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