
S-Corp’s vs. LLC’s - jasonlbaptiste
http://www.feld.com/wp/archives/2006/02/s-corps-vs-llcs.html
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waleedka
I incorporated as an S-Corp when I started. Two weeks ago I got into the
fbFund incubator program, and the first thing they asked me to do is to
convert to a C-Corp. I'm glad I started with an S-Corp because converting to C
is a simple form I can do myself. It's also doable with LLC, but it's a lot
more paperwork.

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ensignavenger
The article doesn't really explain the differences in the two- he just says
why he likes S-Corps better for early stage startups. I formed an LLC because
I have no plans on taking any venture capitol.

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Flemlord
LLCs may have corporate investors and S-Corps cannot. My first startup was an
LLC with a Fortune-500 investor. I don't recall the LLC being a big issue with
them.

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mattrepl
I don't know anything about corporate investors, but the frequently cited
problem with LLCs is their ad-hoc structure. For example, there is no
requirement to have shares, but such a construct can be defined in the
operating agreement and would be needed to have investors.

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joubert
Premature optimization?

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cduan
More like good design practices avoid massive refactoring. The way the article
puts it, choosing the wrong legal structure is like writing your webapp in
hackish Perl, realizing it's becoming popular, and then scrapping your code
and redoing the whole thing using a decent framework.

