Which entity should I form?
Three options. One answer depends on you.
There are really only three choices for a new founder: sole proprietorship, LLC, or C-Corp. Pick by what's actually in front of you.
the answer changes, so let the situation pick itMatch your situation to the right form.
Raising venture capital
C-Corp, in Delaware. Investors need shares, and the whole funding machine is built around the Delaware C-Corp. There is no second option to weigh.
Read LLC vs C-Corp →Running a real business
LLC. You want liability protection and a company that looks like a company to banks, clients, and payment processors — without corporate formalities.
Read LLC vs C-Corp →Still just an idea
Sole proprietorship, for now. You may already be one. Formalize when there's revenue or real liability to protect, not before.
Read LLC vs sole proprietorship →Still torn? Two tie-breakers.
If a customer or client has ever asked for your EIN or a contract. That's the moment to stop being a sole proprietorship. Once you're signing contracts that could come back on you personally, an LLC is the cheapest insurance you'll ever buy.
If anyone has used the words "priced round" or "SAFE." That's the moment to be a C-Corp. Investors don't convert you for free, and they don't wait — better to already be what they expect.
Decided? We'll form it.
LLC or C-Corp, in any state — formation, EIN, registered agent, and state tax registration, all-in.
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