For most people I think LLC's are the best choice as they are very simple and suit bootstrapping perfectly. However if you are going for VC relatively quickly i

For most people I think LLC's are the best choice as they are very simple and suit bootstrapping perfectly. However if you are going for VC relatively quickly it may be worth while getting a c corp. I wrote a couple of posts about this a while back http://stakeventures.com/articles/2005/06/01/legal-structures-for-bootstrappers http://stakeventures.com/articles/2005/06/01/legal-structure... http://stakeventures.com/articles/2006/02/13/why-the-llc-is-the-ruby-on-rails-of-legal-entities http://stakeventures.com/articles/2006/02/13/why-the-llc-is-... This post explains why it might not be a good idea and why an S-corp might be a better choice: http://www.rothcpa.com/archives/001617.php http://www.rothcpa.com/archives/001617.php