Ask HN: Latest thinking in best type of Corp and what State?

3 pointszinxq2 comments

I've always heard if you're getting funding, then Delaware C corp is the way to go. If no funding and small, then LLC at a state level (IRS doesn't recognized LLC correct? So to them, its a sole proprietor). Best states laws/advantages seem to by Wyoming, Nevada, and Delaware - and from some reading in that order. Opinions/facts please?

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Here is a lively discussion tied to a post I had made about why Delaware is not necessarily the best state in which to incorporate your startup: http://news.ycombinator.com/item?id=674469. If you follow the thread, you will see various contributions from HN members discussing the pros and cons of incorporating in various states. I'm sure much more can be added here, but this should be a good start for your assessment.

my opinion is that it just doesn't matter. When you get big to actually benefit from those advantages, you can always reorganize in the state of your choice

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