Should I incorporate as a C-corp or LLC?

Planning to raise VC? C-corp. Bootstrapping or lifestyle business? LLC offers tax flexibility. S-corp for some situations. Talk to a CPA about your plans.

Why Delaware for incorporation?

VC-backed companies almost always Delaware. Well-established business law, efficient courts, investors expect it. Required for most institutional funding.

Can I incorporate myself or need a lawyer?

Services like Stripe Atlas and Clerky handle standard incorporation well. Complex situations (multiple founders, unusual terms) benefit from attorney review.

What does incorporation cost?

Stripe Atlas: $500 one-time. Clerky: ~$800 for full package. Lawyers: $1500-5000+. Plus state filing fees and registered agent. Annual franchise tax in Delaware.

What is a registered agent?

Required address in your state of incorporation for legal documents. Services provide this for ~$50-100/year. Don't use your home address.

Do I need to incorporate before starting?

Ideally yes. Certainly before spending money, hiring, or signing contracts. IP assignment cleaner when company exists. Sooner is better.

What about foreign qualification?

If incorporated in Delaware but operate elsewhere, you may need to register as a foreign entity in that state. Creates ongoing compliance. Common for startups.

How long does incorporation take?

Online services: 1-2 weeks typically. Expedited options available for more money. EIN can be same day online.

What documents do I get?

Certificate of incorporation, bylaws, board resolutions, stock certificates or notices, IP assignment. Keep originals safe. Digital copies fine for most use.

What are founder shares?

Common stock issued to founders at incorporation. Usually with vesting. Nominal price. Critical to set up correctly for tax reasons.

Should founder shares have vesting?

Yes, usually. Protects all founders if one leaves early. Standard 4-year vest, 1-year cliff. Normal and expected by investors.

What about IP assignment?

All founder work should be assigned to company. Do this at incorporation. Otherwise creates issues for funding and acquisition. Non-negotiable.

Do I need a board of directors?

C-corps require board. At formation, usually just founders. Adds investor and independent directors as you grow. Board has legal duties.

What ongoing requirements are there?

Annual franchise tax (Delaware), state filings, maintaining registered agent, board meetings and resolutions, stock ledger. More than just filing once.

Can I convert from LLC to C-corp later?

Yes, but it's a process with tax implications. Cleaner to start as what you'll need. If VC is in your future, start as C-corp.

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Solution illustration for I need to incorporate my startup properly

Critical Priority

Best Incorporation Services to Set Up Your Startup Properly

Set up your company structure the right way from day one

2-4 hours

Founder, Legal

About This Problem

Entity structure affects taxes, liability, fundraising, and exit. Delaware C-corp is the VC standard, but it's not right for everyone. Get this right early.

You might have this problem if:

✓Operating without any formal entity
✓Not sure if LLC or C-corp is right
✓Confused about Delaware vs home state
✓Need to raise VC and don't know requirements
✓Worried about personal liability for business

Success Looks Like

Entity properly formed with all documents
EIN obtained from IRS
Corporate governance in place

Relevant For

pre-launch stagelaunch stage

Incorporation services for startups help you form your legal entity quickly and correctly so you can open a bank account, hire employees, and raise funding. Choosing the wrong structure or filing in the wrong state can create expensive problems later. These services handle the paperwork for LLC, C-Corp, and other entity types, often in as little as one business day.

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About This Problem

Entity structure affects taxes, liability, fundraising, and exit. Delaware C-corp is the VC standard, but it's not right for everyone. Get this right early.