4 ms·
It sounds like a consultancy? I think you'll have a tough time raising capital as consultancies rarely sell for the sort of multiples that VC investors want to
by datalopers 5y ago
It sounds like a consultancy? I think you'll have a tough time raising capital as consultancies rarely sell for the sort of multiples that VC investors want to see. They want a compelling story that's going to yield a 100x return.
Definitely go the c-corp route. You'll have an easier time closing deals since your customers don't have to issue 1099s and can just pay your invoices. And if you ever do find someone willing to invest, the stock issuance is so much easier than dealing with LLC operating agreements.
- HWR_14 5y agoS-Corp customers also don't have to worry about 1099s. They also tend to offer substantial tax savings vs a C Corp. They are less attractive to VC investors, but should work fine if the author plans on scaling by introducing partners instead of passive investors.
- deleted 5y ago[deleted]