Incorporating a C-Corp or an LLC

This might feel overly simplistic, but if the company you are creating is meant to be a traditional startup that has high growth through the use of venture capital then make a C-Corp in Delaware.

Simply put, Venture Capital Firms do not invest in LLCs. You might find a few Angels to come in to an LLC. You might get away with convertible debt or SAFEs with an LLC since it is not equity yet. However, eventually you will have to convert to a C-Corp. The time and expense will be borne by you before you can get that Venture Capital money.

If you have yet to incorporate and you are on the path to venture capital then just start with a C-Corp. If you are early in your startup life you could consider converting before things get more complicated.

The process requires consultation with your lawyer and an accountant. Our advice is to avoid the headache and just start with a C-Corp incorporated in Delaware.