mmckelvy

Yes, I wouldn't dispute there are a lot of situations where organizing somewhere other than your home state is a good idea.

I'm just trying to point out that "Delaware C Corp" may not always be the right answer. It may actually only be the right answer for a very specific use case.

Lol! Glad you at least liked the second article a little better.

I have some plans for future posts that will delve a little further into the weeds on various structuring / finance / tax topics.

I put together an "intro guide" on business structures and tax classifications in another blog post: https://blog.bookandledger.com/topics/business-formation/int...

It should hopefully be a good starting place for you.

I would just add that tax classification and the liability protection entity are two different things. You can form an LLC and elect to be taxed as a C Corp. The upside is most states have fewer admin requirements for LLCs (e.g. you don't have to keep minutes, name officers, etc.)

As for Delaware vs. your home state (CA in this case), I think it depends on the business. If you are a multi-national corp, sure go with Delaware. But if you live in CA, the other owners live in CA, and you're mostly doing business in CA, I'm not sure you'd need a Delaware corp. Delaware has franchise taxes of its own, so you'll end up paying taxes and fees in two states because you'll have to register as a foreign corp in your home state (CA).

Yes there are ongoing fees/taxes, but forming it is $70. I highlight this fact in the "Before you begin" section of the post.

My goal was to point out that you don't necessarily have to shell out $500 - $1,500 bucks just to get the LLC paperwork done.

Yes definitely. I tried to highlight it in the "Before you begin" section of the post.

There is also an LLC fee once you hit a certain income threshold.

I break down the differences among entities in another post from the same blog: https://blog.bookandledger.com/topics/business-formation/int...

Yeah this article is meant as a simple how-to for someone that has already decided they want to form an LLC in California and understand the pros and cons.

I cover some of the issues you cite in another post:

https://blog.bookandledger.com/topics/business-formation/int...

Setting up a business entity is actually not that difficult. You can do it yourself.

In California for instance, you can set up an LLC in about 5 minutes for $70. It requires filing out one form with the name of your business and the owners and mailing it in (takes a few weeks to process). In many other states you can do this online.

Once you have your Articles of Organization, you can take them to any bank and open a bank account with a credit card in about 30 minutes.

Keep in mind, business entities and tax classifications are different things. You can be an LLC and then elect to be taxed as a C Corp. Usually this doesn't make sense unless you need to prevent income from passing through to the owners. Apart from that, everything you can do with a C Corp you can do with an LLC (issue options, split equity, take investments, etc.), just without that double tax and administrative overhead.

In this day and age, there are very few cases where forming a corporation, taxed as a C Corp is an ideal structure for most businesses starting out.

The information in this post is not entirely accurate.

You can certainly issue incentive equity, divide up ownership, AND take money from outside investors with an LLC. We did it frequently at the private equity fund I worked for a few years back.

Little known fact -- if you structure your employee's incentive equity as LLC profit interests, the ultimate payout is treated as capital gains as opposed to ordinary income (which is the case for vanilla options) for tax purposes. It does take a little more structuring but definitely worth the hefty payoff in my opinion.

This looks like a great resource. Interesting that the author says this book is partly for "application devs".

As a JavaScript dev, learning C has always had a certain appeal. However, anytime I start to dive in, there's this nagging voice in the back of my head telling me that I'm wasting my time as I will never use what I'm learning.

To any devs coming from higher level languages, have you found learning C useful in any practical sense? Or has your exploration of C been more "for fun"?

> The fact that you haven't seen this information or reaction before says more about you than the facts of the case.

And there we have it.

No one has called for a ban of all Muslims, citizens or otherwise and no fundamental rights of U.S. citizens have been threatened as far as I know.

We are talking about which non-citizens we allow into our country.

The majority of the reactions I have seen focus almost exclusively on the restrictions themselves rather than the way they were implemented.

Among SV, the media, Hollywood, and elites in general, any call for immigration / entry restrictions almost immediately results in the usual "you are a bigot", "you are a fascist" "we are a nation of immigrants" etc. visceral reactions NOT the kind of more nuanced response you provided above. That's the point of the article to which I referred. Maybe it's time to stop calling people names and organizing against them for having completely legitimate concerns and instead debate the actual issues at hand in a reasonable manner.

I see SV and its ilk are doubling down on the actions and ideas that lost them the election. Perhaps something beyond a knee-jerk reaction is in order.

Great article along these lines: http://blogs.spectator.co.uk/2017/01/nine-questions-protesti...

Particularly salient quote:

"If you decide that border restrictions are fascist then you are declaring the views of most people to be fascist, because most people believe in border security."

Food for thought.

This. I worked with a lot of law firms in my previous career (finance) and in my experience it seemed like they generally went out of their way to reinvent the wheel -- even with trivial things that should be standardized like non-disclosure agreements.

http://www.wallstreetoasis.com/. I think that will have exactly what you're looking for.

Wholeheartedly agree.