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If I incorporate S-Corp for the tax benefit, is it problematic to raise capital later? I've seen that VCs prefer Delaware (which this all seems to be), but I haven't seen anything in particular where they prefer C or S-Corp.



All the S means is you file a request with the IRS to be taxed differently from the C, which is the default. The actual entity does not change, it is a tax issue. Also, with the S election you cannot raise investor money, only the C can raise money.




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