• 0 Posts
  • 1 Comment
Joined 1 year ago
cake
Cake day: November 28th, 2023

help-circle
  • The entity you choose to incorporate as depends on the outcome you want.

    (FYI I’m not a lawyer, but have founded several companies and have wasted $ on lawyers during the early stages when templates or lower cost services will do)

    Want to run a small business? Do an LLC or S Corp, the tax advantages are better than a C Corp. You can do this for a low cost on an automated platform or yourself using free state-website guides/forms.

    Want to raise money and offer shares to investors? Set up a C Corp right away. Register it in Delaware. Investors don’t like wasting time on non-standard corporate structures for no reason.

    Want to run your transactions using Stripe’s API? Then Stripe Atlas is a great option.

    For your operating agreement, there are plenty of good templates out there for you and your cofounder to fork. Most important thing though is you take a lot of time to make sure you both feel fairly compensated and motivated to put 5+ years into this.

    Lawyers can be really really helpful when running a startup, but most of the setup stuff can be boilerplate and not require a legal expert’s time.