FAQ

 Frequently Asked Questions (FAQ)

1. Should I Form My Company as a C Corporation, S Corporation, LLC, Partnership, Or a Sole Proprietorship?

Start it as an S corporation, unless you have to issue both common stock and preferred stock; in that case start it as a C corporation. And an S corporation can easily be converted later into a C corporation. LLCs are popular but can get overly complicated. Partnerships and sole proprietorships are to be avoided because of the potential personal liability to the owners of the business.

2. Where Should I Incorporate My Business?

The standard answer to this is Delaware because of its well-developed corporate law. However, my answer is that it should be the state where the business is located, as this will save you some fees and complexities. You can always reincorporate it later in Delaware

3. How Much Should I Capitalize On My Business With At The Beginning?

As much as you can reasonably afford, and in an amount to at least carry you for 6-9 months with no income. What you will find is that it always takes you longer to get revenues and that you will experience more expenses than you anticipated.