Comments on: Why Inc over LLC? and How many shares should a web startup issue?

By: investor relations

investor relations — Sun, 09 May 2010 08:52:25 +0000

Tax consequences should be the overriding factor in deciding which way to go.

By: Ryan Graves

Ryan Graves — Wed, 30 Sep 2009 07:47:35 +0000

Greg,

Thanks for checking out the blog man. I'd love to chat sometime and share
experiences! ryan[at]renliv.com I appreciate the advice here.
We actually already took the dive to a c-corp so we'll have to just work
from their...based on our plan I hope to only have to go through 1 full tax
cycle before the investment would come into play...but we'll see, nobody
ever really knows how these things are going to play out.

Talk to you soon.
Cheers,
Ryan

By: gbattle

gbattle — Wed, 30 Sep 2009 05:38:08 +0000

Just perusing your site and saw this post.

There are tax advantages to doing an LLC over a C-Corp, namely, founders only have to deal with one layer of taxes whereas, with a C-Corp, you'll have two layers. However, if you are going for VC, they will undoubtedly want you to convert to a C-Corp as it limits their LP's liability. There are ways around this liability, like a C-Corp that holds the VC's shares and stops the liabilities, but it's easier for them to force you into a C-Corp. I'd start as an LLC and, when necessary, convert over to a C-Corp.

By: ryangraves

ryangraves — Wed, 30 Sep 2009 01:47:35 +0000

By: gbattle

gbattle — Tue, 29 Sep 2009 23:38:08 +0000

Just perusing your site and saw this post.

By: ryangraves

ryangraves — Fri, 04 Sep 2009 15:51:02 +0000

Absolutely, there are significant tax considerations to be taken in this
decisions...

Plenty of info for a whole post or 10.

I'll address it soon.

Cheers buddy.

By: AmEndurance

AmEndurance — Fri, 04 Sep 2009 15:46:55 +0000

Great post Ryan. Another thing to consider is tax consequences. Are there any tax benefits to going C-corp over LLC?

By: paramendra

paramendra — Thu, 03 Sep 2009 19:20:04 +0000

Pointers. :-)