WE'VE MOVED!
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Options
S or C corporation
anilo
subscriber Posts: 2
Hi guys,
I am looking for some advise to setup the right corporation type.
My plan for the next 6 yrs is outlined below:
1. First 6 months: be self-funded. No profit.
2. Next 6 months: get angel funding. No profit
3. Next 3 yrs: Get Series A, B & C - VC funding. No profit.
4. Next 1 yr: Make profit as revenues come in.
5. Then: go public.
===================
What type of corporation would you suggest?
I know to be a public company I would have to be a C corp., but do you think I should start with a S corporation for now and then change in the 6th year to a C corp.
Do angel and VC investors require me to a C corp.?
Thanks,
-Anil
I am looking for some advise to setup the right corporation type.
My plan for the next 6 yrs is outlined below:
1. First 6 months: be self-funded. No profit.
2. Next 6 months: get angel funding. No profit
3. Next 3 yrs: Get Series A, B & C - VC funding. No profit.
4. Next 1 yr: Make profit as revenues come in.
5. Then: go public.
===================
What type of corporation would you suggest?
I know to be a public company I would have to be a C corp., but do you think I should start with a S corporation for now and then change in the 6th year to a C corp.
Do angel and VC investors require me to a C corp.?
Thanks,
-Anil
Sign In or Register to comment.
Comments
Chris Maddaloni is an Internet Marketing Consultant for http://www.advernation.com a New York City based Internet Marketing Company serving businesses in Manhattan, Brooklyn, Queens, Staten Island, The Bronx, Long Island and Westchester. He has helped websites with SEO (Search Engine Optimization) getting them exposure on the first page of top search engines using organic methods. He has a blog at http://www.advernation.wordpress.com and http://www.advernation.blogspot.com
Hi guys, I am looking for some advise to setup the right corporation type. My plan for the next 6 yrs is outlined below: 1. First 6 months: be self-funded. No profit. 2. Next 6 months: get angel funding. No profit3. Next 3 yrs: Get Series A, B & C - VC funding. No profit.4. Next 1 yr: Make profit as revenues come in.5. Then: go public. ===================What type of corporation would you suggest? I know to be a public company I would have to be a C corp., but do you think I should start with a S corporation for now and then change in the 6th year to a C corp. Do angel and VC investors require me to a C corp.? Thanks,-Anil
Although the S corp does offer the pass thru - there are limitations several limitations on the securities/ownership which will be a detriment to your funding plan.