On: LLC vs. S-Corp vs. C-Corp

[orionsbelt]

I've heard leading lawyers at the Silicon Valley firms recommend that any start-up seriously seeking VC funding choose a Delaware C-Corp.

The main reason being that investors do not want to deal with the pass-through income associated with an LLC or S-Corp.

(Of course, this is not legal advice, and you should speak to your lawyer.)

[tptacek → orionsbelt]

You will not stay LLC or S after taking a round of funding. But you won't keep your C corp either, because there are lots of details you will get wrong in forming it. It is very straightforward to convert a sane LLC to the C corp that investors want. It is not as straightforward to convert your C corp to theirs.