🏛️ Formation

LLC vs C-Corp vs S-Corp

Lesson 1 of 9 · 7 min read

LLC: pass-through tax, simple, default for solo and small. Best for: bootstrapped, real estate, side hustles.

C-Corp: double tax, but unlimited shareholders + multiple share classes. Best for: VC-backed startups planning to raise on a SAFE or priced round.

S-Corp: not an entity, an IRS election. Pass-through with self-employment tax savings on distributions. Best for: profitable LLCs above ~$60K net.

When in doubt: LLC now, convert to C-Corp at first VC round.

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