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This is truly inspiring. We're bootstrapped and profitable. Unfortunately we incorporated as a Delaware C Corp because we didn't know we wouldn't raise. If no
by a13n 8y ago
This is truly inspiring.
We're bootstrapped and profitable. Unfortunately we incorporated as a Delaware C Corp because we didn't know we wouldn't raise.
If non-VC were more normalized, like Rand thinks maybe it should be, it probably would have saved us a bunch of money and hassle from the get go. I also think the expected return as a founder is probably better if you don't shoot for the extremely unlikely event of building a billion dollar company in 5-7 years.
I'm rooting for you Rand! Btw I finally moved our blog over to a subfolder like you suggested. Keep up the awesome work, can't wait to try SparkToro.
- randfish 8y agoNice! LMK if I can ever be helpful to you/Canny
- pmiller2 8y agoWhy does being a Delaware C corp inhibit your ability to raise VC money?
- zrail 8y agoI think they're saying they won't be raising, which means being a Delaware C corp is a liability rather than an asset.
- hugs 8y agoWhy is it a liability?
- iampims 8y agoC corps require more red-tape around day to day actions, and as a result are generally more expensive to operate.
- hugs 8y agoWhat red tape? If it's basic accounting issues, that's true of any business. If it's c-corp specific paperwork, that takes an hour of my time once a year to submit the annual report to Delaware.
- staticautomatic 8y agoThe regulatory stuff is just a pain in the ass compared to an LLC. It's mostly that simple.
- thomasmeeks 8y agoIn a nutshell, it is more complex & expensive to run a c-corp compared to, for example, a LLC. The way taxes are handled is a meaningful part of the issue.
- paulsutter 8y agoCan’t deduct the expenses personally in a C Corp, which is a giant personal hit (you can with an S corp or LLC)