4 ms·
The #1 reason not to go the LLC route when you start is if you are not the solo founder. If you have co-founders, please, please, save yourself years of agony,
by alain94040 15y ago
The #1 reason not to go the LLC route when you start is if you are not the solo founder. If you have co-founders, please, please, save yourself years of agony, start with a C-corp and proper vesting in place upfront.
If you wonder how to split equity, check out the co-founder calculator I wrote at http://foundrs.com/calculator/index.php http://foundrs.com/calculator/index.php - it's fun to play with :-)
- tptacek 15y agoIf you're going to have employees and those employees are going to have formal equity as part of their compensation, the simplest structure to use seems to be the S-Corporation. If you're not granting options to employees or you're just 3-4 founders, you can get the same effect as vesting with buy-sell agreements. You can do vesting in LLCs (at least in most places, right?). You need a lawyer in any case.