5 ms·
I'd really like to see more information on when you should become a C-Corp vs LLC, and how big of a pain in the ass it is to change. Right now, a C-Corp seems
by candiddevmike 6y ago
I'd really like to see more information on when you should become a C-Corp vs LLC, and how big of a pain in the ass it is to change. Right now, a C-Corp seems like a lot of paperwork and taxes without a lot of benefit.
- peter-gust 6y agoDisclaimer: I work at Gust. That said, https://gust.com/launch/comparison/delaware-corp-vs-llc https://gust.com/launch/comparison/delaware-corp-vs-llc will give you a good idea of the trade-offs and considerations. Based on the homework we've done, C-Corp is a cost- and paperwork-competitive choice if you want to leverage equity for funding or employee incentives. In terms of changing from LLC to C-Corp, statutory conversion is relatively straightforward especially if you structure your original LLC with future conversion in mind (choose a state that supports statutory conversion, understand how membership interest will convert into shares). I _think_ Stripe Atlas might still offer an LLC with an easy conversion path. Some more info on different ways to manage the change here: https://gust.com/launch/faq/articles/i-already-have-an-llc-do-i-have-to-dissolve-it-to-be-able-to-use-gust-launch https://gust.com/launch/faq/articles/i-already-have-an-llc-d... (some Gust specific info in there, but most is general purpose).
- jsperx 6y agoYes, at least as of 4 months ago (when I got mine) Atlas was still offering a Delaware LLC with an operating agreement structured to make it easier to convert to a C Corp later.
- deleted 6y ago[deleted]