5 ms·

I wouldn't suggest creating an LLC. I think it's a standard practice to incorporate all Y-Comb companies.

• tptacek 15y ago
  * LLCs are corporations. * My understanding is all YC companies are C-corps. * That's because LLC's and S-Corps have limitations on shareholders and share classes. * The C.W. is that any major external investor is going to rip up your corp structure no matter what you do. * It's almost certainly not the case that YC would turn town a promising team because they were already an LLC. The principals just need to unanimously agree to convert. * You should get some kind of limited liability structure ASAP when you start, because until you do, most/all of your company obligations attach themselves to your credit, your assets, your mortgage, &c. * Of the limited liability structures available to you, LLCs are the fastest and cheapest. S-Corp and C-Corp only change taxation and equity structure.