The problem is that these questions really should be tailored to the company's details because that's how the decisions are made. YC sets up C corps so they can

The problem is that these questions really should be tailored to the company's details because that's how the decisions are made. YC sets up C corps so they can easily issue shares to VC. They would probably retain the cash as a part of the agreements with the VC to spend on growing the business. If that's not your plan, then alternative organization might make sense and will eliminate some of your tax fears. Also, if you have more of a lifestyle type business, then distributions would make sense. Do you start to see how the intent and details change the advice? Talking to someone when you are setting something new up or having a major change makes sense. That said, don't worry too much about the taxes. If you are so worried about not giving the government a cut that you don't make money, then you lost the point. What is it specifically that you want to know here? Details are what you need to give to get the advice you are looking for.