Incorporation
Raising VC? Delaware C-Corp. Bootstrapping forever? LLC. C-Corp is the standard for high growth startups.
What is QSBS?
QSBS is Qualified Small Business Stock is a US tax rule. Hold stock for five years. Pay zero tax on the first ten million dollars of profit.
The 3 Core Benefits
Investor Ready
VCs only invest in Delaware C-Corps. LLCs are not investable for most funds.
Standard Tax
C-Corps facilitate corporate tax benefits. Avoid personal tax leaks from business profit.
Stock Options
C-Corps make employee equity simple. LLCs require complex profit interest units.
How to Incorporate
Use Stripe Atlas
Use Stripe Atlas or Clerky. Click several buttons. Wait two days. You have a legal entity.
Get EIN
Obtain an Employer Identification Number. This is the social security number for your business.
Buy Your Shares
Buy your founder shares immediately. File an 83(b) election within thirty days. Do not miss this deadline.
Local LLC vs. Delaware C-Corp
| Feature | Local LLC | Delaware C-Corp |
|---|---|---|
| Investable | No | Yes |
| Tax Perks | Simple | QSBS |
Frequently Asked Questions
Why Delaware?
They have specialized business courts. Every investor understands their law.
Can I switch?
Switching from LLC to C-Corp is possible. Switching from C-Corp to LLC is expensive.
Ready for traffic from trusted founders?
Go back home