4 ms·
Sure, if you're planning to run a lifestyle business do whatever you want. But if you're not, consider when you have an interested potential investor who's mul
by calcsam 12y ago
Sure, if you're planning to run a lifestyle business do whatever you want.
But if you're not, consider when you have an interested potential investor who's mulling over your business model and asks offhandedly, "So you're a Delaware C-Corp, right?" and you answer with this.
Then he thinks: "if they didn't even get this right, what else have they missed?"
And you lose the deal.
- bradleybuda 12y agoAs someone who has pitched many investors, sometimes successfully, I can tell you that nobody ever asked about the incorporation status of my company until well after the deal was agreed to. Investors care about you, your team, your traction, and your product. Everything else (including some terrible incorporation and accounting mishaps) can and will be fixed if your company is good. I would be more suspicious of a founder that spends too much time getting their incorporation just right - for businesses that are going to raise institutional capital, that's really the least of your concerns.