

ASK YC: DIY C Corporation - lisp_newb

Hey all,<p><pre><code>  I've read that it's good to become a Deleware C Corporation to have the company as a separate entity; I've already read that online Deleware C corporation forms for $200.00 sucks. I'm currently a student in California. What's the optimal way for me to become a Deleware C Corporation?
</code></pre>
Thanks.
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tptacek
The immediate answer to your question is, Google for "delaware incorporate",
and look at the ads. I think we used Agents and Corporations, Inc., who were
the cheapest at the time.

IIRC, to incorporate in Delaware, you pay ~$100 for a filing fee. Since you
don't live in Delaware, you're also required to have a Registered Agent in the
state, which also costs money and is built into the fee structure for
whichever company incorporates you. If you just pick the cheapest turnkey
incorporation service off Google, you're probably not going to beat the cost
trying to DIY.

To answer some questions you didn't ask:

Are you sure you want a C corp? C corps can be liable for corporate taxes. If
you're a 2-person shop, C corp status probably isn't what you want; you don't
care about having a board of directors, and you want pass-through taxation.
What you want instead is an LLC, which requires less paperwork but still
provides you with limited liability, a tax ID, and an entity that can invoice
and be invoiced.

Are you sure you want Delaware? You probably do, if only to save time and
energy thinking about it. There's a NV vs. DE debate with alleged tax
advantages for NV, but if you're concerned about startup costs, DE is probably
the cheapest and most hassle-free. For instance, we looked in to incorporating
in NY or IL (our home states), but both required us to run an ad in the paper
announcing ourselves!

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yrashk
LOL.

The optimal way for you to become a corporation is to change your status from
natural person to legal person (and that leads to a possible immortality,
isn't that cool?)

~~~
lisp_newb
haha; okay I meant, how do I form a Deleware C Corporation :-)

~~~
yrashk
Seriously, if you want to save like, $100 and waste a lot of time — then go to
<http://www.corp.delaware.gov/howtoform.shtml> and read all you can find.

Though beware that you will anyway need registered agent services, which range
from $50 to $300 annually.

Also forming corporation does not end with incorporation, it only starts with
it. You will have to meet all the regulations, like having some paperwork
done; accounting and annual reports + franchise tax, etc.

But first — ask yourself — why do you need to incorporate right now, what
advantages are looking for? Are you ready for some disadvantages?

~~~
lisp_newb
People sue each other for the silliest reasons these days. I'm creating a
MMORPG for the iPhone. Suppose one person says something mean to another
person (MySpace Fiasco) or someone gets too addicted to the game (EverQuest /
WOW), I don't want to get personally sued (and in this current time, people
sue each other for trivial reasons) -- so it's about protection.

