Incorporation: Delaware C-Corp vs. LLC
Raising VC? Delaware C-Corp (Stripe Atlas). Bootstrapping forever? LLC (easier taxes). If unsure, go C-Corp to keep options open.
What is QSBS (Qualified Small Business Stock)?
QSBS (Qualified Small Business Stock) is A US tax loophole that says if you hold C-Corp startup stock for 5 years, you pay roughly 0% tax on the first $10M of profit.
The 3 Core Benefits
Investor Standard (C-Corp)
VCs cannot invest in LLCs (legally/tax-wise). They only buy C-Corp shares. Don't be weird. Be standard.
Pass-Through (LLC)
In an LLC, profits "pass through" to your personal tax return. Good for lifestyle businesses. Bad if you want to retain earnings.
Employee Options
Giving stock options (ESOP) is standard in C-Corps. It is a nightmare in LLCs (Profit Interest Units). Support your team.
How to Incorporate
Use Stripe Atlas
Pay $500. Click 5 buttons. Wait 2 days. Done. You have a Delaware C-Corp and a Bank Account. Don't hire a lawyer ($5k).
Get an EIN
You need this for taxes/banking. Atlas does it for you. It is your company's Social Security Number.
Buy Your Shares
CRITICAL. You must "buy" your founder shares immediately (usually for $10). File an 83(b) election within 30 days.
83(b) Election
If you fail to file this within 30 days to the IRS, you will owe massive taxes later. Set a reminder. Mail it with tracking.
Verified Trust
You get more trust from banks and partners as a C-Corp. Upload your Certificate of Incorporation to your footer.
Local LLC vs. Delaware C-Corp
| Feature | Local LLC | Delaware C-Corp |
|---|---|---|
| Investable | No | Yes |
| Tax Benefits | Simple | QSBS (Huge) |
| Setup Cost | $100 | $500 |
Frequently Asked Questions
Why Delaware?
They have the best business courts. Every investor understands Delaware law. It is the "lingua franca" of business.
Can I switch later?
LLC -> C-Corp is possible (Conversion). C-Corp -> LLC is very hard/expensive (Tax event). Start correctly.
What about doing business in my state?
You usually need to register as a "Foreign Qualification" in your home state (e.g., California). Pay the extra fee.
What makes a launch channel high intent?
High-intent channels have users actively searching for solutions, not just browsing a feed.
How many channels should I launch on?
Start with 3-5 strong channels, measure conversions, then expand to 10-12 over time.
How do I avoid launch fatigue?
Stagger your launches and reuse assets so each channel gets a focused push.
What should I measure after launch?
Track qualified signups, backlinks, and demo requests, not just raw traffic.
How does Mesh of Growth fit with other platforms?
Use Mesh for compounding reviews and backlinks while other platforms provide short-term spikes.
Ready to get instant traffic from trusted founders?
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