3 ms·
C corp; it's just that getting there from the questioner's LLC may be expensive/cumbersome
by kgrin 17y ago
C corp; it's just that getting there from the questioner's LLC may be expensive/cumbersome
- staunch 17y agoWhat is hard or expensive about converting an LLC to a C corp? Assuming two 50/50 partners in a simple California LLC.
- watchandwait 17y agoIt probably is not an issue for a young web company but it may be a taxable event...it all depends on the LLC's assets and liabilities and their tax accounting basis.
- spolsky 17y agoWe're going through this right now ("converting" an LLC to a C-Corp to make VCs happy). It's not hard, not expensive, and not cumbersome. We're creating a new C Corp, and making the old LLC a subsidiary of the C Corp. It's common and standard and it's about 5% of the paperwork that lawyers do to close a Series A round. It's basically the easiest part of our financing. Don't worry about starting your company as an LLC. If you don't take VC, you'll be MUCH happier with an LLC than a C Corp, because it avoids double taxation in many scenarios. The best of both worlds is to start as an LLC and only convert to a C Corp when and if you take Series A financing, in which case you'll be doing so much paperwork the conversion will be the least of your worries.