LLCs vs. C-Corps: Which Entity Is Right for Your Startup?
This lesson is an article published by Ashurst Perkins Coie.
Read the articleWhat you'll get
A startup lawyer compares the two usual choices: an LLC is simpler and passes its profits through to the owners' tax returns, while a C corporation is what venture investors expect and can issue different classes of stock. It ends with the questions that decide it, starting with whether you plan to raise outside money.
Do this week
Write one sentence on whether you expect to raise money from angels or venture funds in the next two years, and note which entity that answer points to.