ENTREPRENEURSHIP

How to incorporate as a Delaware C Corp?

Kyle Mathews's picture

I’m going to be incorporating my company (http://eduglu.com) soon as a Delaware C Corp and am looking for advice from people who’ve done it before or are familiar with the process.

The basic steps are listed here: http://corp.delaware.gov/howtoform.shtml

I’m planning on doing this by myself w/o a lawyer as a) it seems simple enough and I’m no dummy and b) I’m the sole founder and stockholder so issuing stock should be straightforward enough :) If you think I absolutely need a lawyer involved, I’d like to hear why.

The only real roadblock it seems is that I need a “registered agent” in Delaware. It seems there’s lots of companies there which will be one for you. Any advice about obtaining a cheap reliable “registered agent”?

On a related note, there seems to be dozens of companies that promise to help you fill out paperwork and such while incorporating. Are any of them any good? Helpful?

What other tricky things should I be aware of that I might not be aware of due to my naivety?

Thanks in advance for your help! I’d love to hear about some of you have gone through this process! If you could share here publicly, that’d be great. If you don’t feel comfortable sharing publicly, I’d appreciate a private email.

15 comments

Have you seen this site: http://startuplawyer.com/?

I can’t tell from the email if you are incorporating by filing the paperwork
yourself or using an online service. Legalzoom can file the paper work and
be your registered agent. The only problem is that the charge a fee few
hundred dollars as a fee.

Dan

- Show quoted text -

On Fri, Aug 13, 2010 at 3:03 PM, Kyle Mathews <***@***.***>wrote:

> I’m going to be incorporating my company (http://eduglu.com) soon as a
> Delaware C Corp and am looking for advice from people who’ve done it before
> or are familiar with the process.
>
> The basic steps are listed here: http://corp.delaware.gov/howtoform.shtml
>
> I’m planning on doing this by myself w/o a lawyer as a) it seems simple
> enough and I’m no dummy and b) I’m the sole founder and stockholder so
> issuing stock should be straightforward enough :) If you think I absolutely
> need a lawyer involved, I’d like to hear why.
>
> The only real roadblock it seems is that I need a “registered agent” in
> Delaware. It seems there’s lots of companies there which will be one for
> you. Any advice about obtaining a cheap reliable “registered agent”?
>
> On a related note, there seems to be dozens of companies that promise to
> help you fill out paperwork and such while incorporating. Are any of them
> any good? Helpful?
>
> What other tricky things should I be aware of that I might not be aware of
> due to my naivety?
>
> Thanks in advance for your help! I’d love to hear about some of you have
> gone through this process! If you could share here publicly, that’d be
> great. If you don’t feel comfortable sharing publicly, I’d appreciate
> a private email.
>
> —
> Full discussion: https://island.byu.edu/entrepreneurship/node/8229
> Manage my subscriptions:
> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
 >

I’ve read a few blog posts from startuplawyer.com but not specifically on
this quest. Thanks for the remainder! They’re a great resource.

I haven’t seen legalzoom before, but just googling around today I ran across
dozens of services like them. What I’d like to know is if the service they
provide is worth it? Is the process difficult enough to traverse that the
service they provide is worth it?


Kyle Mathews

Blog: kyle.mathews2000.com/blog
Twitter: http://twitter.com/kylemathews
Company: http://eduglu.com

- Show quoted text -

On Fri, Aug 13, 2010 at 5:26 PM, Daniel Burch <***@***.***>wrote:

> Have you seen this site: http://startuplawyer.com/?
>
> I can’t tell from the email if you are incorporating by filing the
> paperwork yourself or using an online service. Legalzoom can file the paper
> work and be your registered agent. The only problem is that the charge a
> fee few hundred dollars as a fee.
>
> Dan
>
>
>
> On Fri, Aug 13, 2010 at 3:03 PM, Kyle Mathews <***@***.***>wrote:
>
>> I’m going to be incorporating my company (http://eduglu.com) soon as a
>> Delaware C Corp and am looking for advice from people who’ve done it before
>> or are familiar with the process.
>>
>> The basic steps are listed here: http://corp.delaware.gov/howtoform.shtml
>>
>> I’m planning on doing this by myself w/o a lawyer as a) it seems simple
>> enough and I’m no dummy and b) I’m the sole founder and stockholder so
>> issuing stock should be straightforward enough :) If you think I absolutely
>> need a lawyer involved, I’d like to hear why.
>>
>> The only real roadblock it seems is that I need a “registered agent” in
>> Delaware. It seems there’s lots of companies there which will be one for
>> you. Any advice about obtaining a cheap reliable “registered agent”?
>>
>> On a related note, there seems to be dozens of companies that promise to
>> help you fill out paperwork and such while incorporating. Are any of them
>> any good? Helpful?
>>
>> What other tricky things should I be aware of that I might not be aware of
>> due to my naivety?
>>
>> Thanks in advance for your help! I’d love to hear about some of you have
>> gone through this process! If you could share here publicly, that’d be
>> great. If you don’t feel comfortable sharing publicly, I’d appreciate
>> a private email.
>>
>> —
>> Full discussion: https://island.byu.edu/entrepreneurship/node/8229
>> Manage my subscriptions:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
>> Stop emails for this discussion:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>>
>
 >

I can’t say because I’m doing it for the first time too. I’ve talked
extensively talked with people who have incorporated (Delaware), and they
assure me that is very simple. I’ve incorporated LLCs in California and
there always seems to be lots of forms to fill out and sign. With that said,
a service like Legalzoom may be helpful just to make sure that you fill out
everything in Delaware and Utah. Last thing a young startup needs are
penalty fees for not checking the right box.

I am not so worried about filing with Delaware, but rather writing a concise
and smart operating agreement and by laws. I’ve talked to way to many
start-ups that lose control, lose potential investors, or etc because of the
structure of the company. I’m not sure you are planning to look for capital,
but it couldn’t hurt to be prepared.

I have some time to mull over my choices, but it sounds like you are close
to signing a software contract. You definitely need tax and liability
structure before signing anything.

Good luck.

Dan

- Show quoted text -

On Fri, Aug 13, 2010 at 5:26 PM, Kyle Mathews <***@***.***>wrote:

> I’ve read a few blog posts from startuplawyer.com but not specifically on
> this quest. Thanks for the remainder! They’re a great resource.
>
> I haven’t seen legalzoom before, but just googling around today I ran
> across dozens of services like them. What I’d like to know is if the service
> they provide is worth it? Is the process difficult enough to traverse that
> the service they provide is worth it?
>
> —
> Kyle Mathews
>
> Blog: kyle.mathews2000.com/blog
> Twitter: http://twitter.com/kylemathews
> Company: http://eduglu.com
>
>
>
> On Fri, Aug 13, 2010 at 5:26 PM, Daniel Burch <***@***.***>wrote:
>
>> Have you seen this site: http://startuplawyer.com/?
>>
>> I can’t tell from the email if you are incorporating by filing the
>> paperwork yourself or using an online service. Legalzoom can file the paper
>> work and be your registered agent. The only problem is that the charge a
>> fee few hundred dollars as a fee.
>>
>> Dan
>>
>>
>>
>> On Fri, Aug 13, 2010 at 3:03 PM, Kyle Mathews <***@***.***>wrote:
>>
>>> I’m going to be incorporating my company (http://eduglu.com) soon as a
>>> Delaware C Corp and am looking for advice from people who’ve done it before
>>> or are familiar with the process.
>>>
>>> The basic steps are listed here:
>>> http://corp.delaware.gov/howtoform.shtml
>>>
>>> I’m planning on doing this by myself w/o a lawyer as a) it seems simple
>>> enough and I’m no dummy and b) I’m the sole founder and stockholder so
>>> issuing stock should be straightforward enough :) If you think I absolutely
>>> need a lawyer involved, I’d like to hear why.
>>>
>>> The only real roadblock it seems is that I need a “registered agent” in
>>> Delaware. It seems there’s lots of companies there which will be one for
>>> you. Any advice about obtaining a cheap reliable “registered agent”?
>>>
>>> On a related note, there seems to be dozens of companies that promise to
>>> help you fill out paperwork and such while incorporating. Are any of them
>>> any good? Helpful?
>>>
>>> What other tricky things should I be aware of that I might not be aware
>>> of due to my naivety?
>>>
>>> Thanks in advance for your help! I’d love to hear about some of you have
>>> gone through this process! If you could share here publicly, that’d be
>>> great. If you don’t feel comfortable sharing publicly, I’d appreciate
>>> a private email.
>>>
>>> —
>>> Full discussion: https://island.byu.edu/entrepreneurship/node/8229
>>> Manage my subscriptions:
>>> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
>>> Stop emails for this discussion:
>>> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>>>
>>
>>
 >

Kyle, if I were in your shoes, I would *most definitely*, most most
definitely at least have an initial conversation with a lawyer before you
move forward any more. Michael and I (Bryan) organized our company as an LLC
this past February. We did the original paperwork ourselves, and then went
back and re-worked our documents with the help of a lawyer later on. We have
now signed our first major client and I cannot tell you how
*enormously*helpful it was to have the law firm involved. We
originally tried to handle
it all ourselves, working from templates we found online. But, Kyle you will
save so much time and future headache if you involve a lawyer from the
beginning. The value I see in it is that the lawyer will, especially if you
stay with the same one over time, come to know your business and be able to
make specific recommendations for things that *your particular company *may
come up against. Anyway, please email me or Facebook me if you are
interested in talking this over in any more detail. We used BTJD (Bennett
Tueller Johnson and Deere). We did a lot of lawyer shopping and felt the
most confidence in having a long-term relationship with BTJD. Their main
phone number is (801) 438-2000. This firm does all the legal work for the
companies in BoomStartup. We have been very and have used them for our
company founding and all of our contracts and agreements. When you call, you
can ask to speak with Jared Richards. Talk him through your situation and
ask what he would recommend. Multiple times he has told us that for a
particular document, we *could *save money by using certain templets online
and then sending any modification requests to him. Great firm and very, very
honest and helpful.

- Show quoted text -

On Fri, Aug 13, 2010 at 4:03 PM, Kyle Mathews <***@***.***>wrote:

> I’m going to be incorporating my company (http://eduglu.com) soon as a
> Delaware C Corp and am looking for advice from people who’ve done it before
> or are familiar with the process.
>
> The basic steps are listed here: http://corp.delaware.gov/howtoform.shtml
>
> I’m planning on doing this by myself w/o a lawyer as a) it seems simple
> enough and I’m no dummy and b) I’m the sole founder and stockholder so
> issuing stock should be straightforward enough :) If you think I absolutely
> need a lawyer involved, I’d like to hear why.
>
> The only real roadblock it seems is that I need a “registered agent” in
> Delaware. It seems there’s lots of companies there which will be one for
> you. Any advice about obtaining a cheap reliable “registered agent”?
>
> On a related note, there seems to be dozens of companies that promise to
> help you fill out paperwork and such while incorporating. Are any of them
> any good? Helpful?
>
> What other tricky things should I be aware of that I might not be aware of
> due to my naivety?
>
> Thanks in advance for your help! I’d love to hear about some of you have
> gone through this process! If you could share here publicly, that’d be
> great. If you don’t feel comfortable sharing publicly, I’d appreciate
> a private email.
>
> —
> Full discussion: https://island.byu.edu/entrepreneurship/node/8229
> Manage my subscriptions:
> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
 >

Kyle - My brother-in-law is a tax lawyer in California. He just set up my
LLC here in Utah, and it was very nice to just let him handle it all.
Obviously he gave me a really great price. He has experience setting up
companies in Delaware. if you wanted to just chat with him to ask some
questions, I don’t think he would mind. A simple phone call with him is
 free.

Hit me up for his contact info if you’re interested.

Mark

- Show quoted text -

On Sat, Aug 14, 2010 at 1:55 PM, Bryan C. Bennett <***@***.***
> wrote:

> Kyle, if I were in your shoes, I would *most definitely*, most most
> definitely at least have an initial conversation with a lawyer before you
> move forward any more. Michael and I (Bryan) organized our company as an LLC
> this past February. We did the original paperwork ourselves, and then went
> back and re-worked our documents with the help of a lawyer later on. We have
> now signed our first major client and I cannot tell you how *enormously*helpful it was to have the law firm involved. We originally tried to handle
> it all ourselves, working from templates we found online. But, Kyle you will
> save so much time and future headache if you involve a lawyer from the
> beginning. The value I see in it is that the lawyer will, especially if you
> stay with the same one over time, come to know your business and be able to
> make specific recommendations for things that *your particular company *may
> come up against. Anyway, please email me or Facebook me if you are
> interested ! in talking this over in any more detail. We used BTJD (Bennett
> Tueller Johnson and Deere). We did a lot of lawyer shopping and felt the
> most confidence in having a long-term relationship with BTJD. Their main
> phone number is (801) 438-2000. This firm does all the legal work for the
> companies in BoomStartup. We have been very and have used them for our
> company founding and all of our contracts and agreements. When you call, you
> can ask to speak with Jared Richards. Talk him through your situation and
> ask what he would recommend. Multiple times he has told us that for a
> particular document, we *could *save money by using certain templets
> online and then sending any modification requests to him. Great firm and
> very, very honest and helpful.
>
> On Fri, Aug 13, 2010 at 4:03 PM, Kyle Mathews <***@***.***>wrote:
>
>> I’m going to be incorporating my company (http://eduglu.com) soon as a
>> Delaware C Corp and am looking for advice from people who’ve done it before
>> or are familiar with the process.
>>
>> The basic steps are listed here: http://corp.delaware.gov/howtoform.shtml
>>
>> I’m planning on doing this by myself w/o a lawyer as a) it seems simple
>> enough and I’m no dummy and b) I’m the sole founder and stockholder so
>> issuing stock should be straightforward enough :) If you think I absolutely
>> need a lawyer involved, I’d like to hear why.
>>
>> The only real roadblock it seems is that I need a “registered agent” in
>> Delaware. It seems there’s lots of companies there which will be one for
>> you. Any advice about obtaining a cheap reliable “registered agent”?
>>
>> On a related note, there seems to be dozens of companies that promise to
>> help you fill out paperwork and such while incorporating. Are any of them
>> any good? Helpful?
>>
>> What other tricky things should I be aware of that I might not be aware of
>> due to my naivety?
>>
>> Thanks in advance for your help! I’d love to hear about some of you have
>> gone through this process! If you could share here publicly, that’d be
>> great. If you don’t feel comfortable sharing publicly, I’d appreciate
>> a private email.
>>
>> —
>> Full discussion: https://island.byu.edu/entrepreneurship/node/8229
>> Manage my subscriptions:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
>> Stop emails for this discussion:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>>
>
>
> —
> Full discussion:
> https://island.byu.edu/content/how-incorporate-delaware-c-corp
> Manage my subscriptions:
> https://island.byu.edu/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/og_mailinglist/unsubscribe/8229
 >

========================== "Be excellent to each other!"

> I am not so worried about filing with Delaware, but rather writing a > concise and smart operating agreement and by laws. I've talked to way to > many start-ups that lose control, lose potential investors, or etc because > of the structure of the company. I'm not sure you are planning to look for > capital, but it couldn't hurt to be prepared. Do you know of any good boilerplate bylaws / operating agreements? My company structure is pretty simple... it's just me right now and I own 100% of the company.
To answer my own question, I just ran across this "Startup-Up forms" website where the Orrick law firm has released a number of common legal forms needed by startups. http://www.orrick.com/practices/corporate/emergingCompanies/startup/index.asp

Kyle:

A month ago, I found a really cool Start-up form template on an incubator
site. I thought I tagged the page, but I can’t seem to find it. I’ll send it
to you as soon as I find it.

By the way, what is your start-up?

Dan

- Show quoted text -

On Tue, Aug 17, 2010 at 10:56 AM, Kyle Mathews <***@***.***>wrote:

> To answer my own question, I just ran across this “Startup-Up forms”
> website where the Orrick law firm has released a number of common legal
> forms needed by startups.
>
>
> http://www.orrick.com/practices/corporate/emergingCompanies/startup/index.asp
>
> —
> Full discussion:
> https://island.byu.edu/entrepreneurship/content/how-incorporate-delaware-c-corp
>
> Manage my subscriptions:
> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>
 >

Kyle,

Just making sure you know about these awesome (free of charge) counseling
 agencies:

http://www.delawaresbdc.org/ Small Business Development Center - Delaware
http://www.scoredelaware.org/ SCORE - Counselors to America’s Small
Business- Delaware

Best wishes finding help to set up your business.


Eddy Yujra

- Show quoted text -

On Tue, Aug 17, 2010 at 2:40 PM, Daniel Burch <***@***.***>wrote:

> Kyle:
>
> A month ago, I found a really cool Start-up form template on an incubator
> site. I thought I tagged the page, but I can’t seem to find it. I’ll send it
> to you as soon as I find it.
>
> By the way, what is your start-up?
>
> Dan
>
>
> On Tue, Aug 17, 2010 at 10:56 AM, Kyle Mathews <***@***.***>wrote:
>
>> To answer my own question, I just ran across this “Startup-Up forms”
>> website where the Orrick law firm has released a number of common legal
>> forms needed by startups.
>>
>>
>> http://www.orrick.com/practices/corporate/emergingCompanies/startup/index.asp
>>
>> —
>> Full discussion:
>> https://island.byu.edu/entrepreneurship/content/how-incorporate-delaware-c-corp
>>
>> Manage my subscriptions:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
>> Stop emails for this discussion:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>>
>>
>
> —
> Full discussion:
> https://island.byu.edu/content/how-incorporate-delaware-c-corp
> Manage my subscriptions:
> https://island.byu.edu/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/og_mailinglist/unsubscribe/8229
 >

Yah, I'd try and do a DIY approach. I'm curious. Why a C corp out of Delaware? Why not a Utah LLC?
Did anyone find some boiler plate contracts they liked. I've been searching but there seem to be a lot of velvet ropes. Go figure.

I agree. The Delaware C-Corp gets a lot of attention, but the simple Utah
LLC will provide a great solution to most of an entrepreneurs’ concerns. You
can still file taxes as an S-Corp or other type of entity. Anyway, I think
an LLC is worth considering. But, really, I *highly* recommend you call and
have a short conversation with a few different lawyers. The first call is
usually free and very helpful.

- Show quoted text -

On Tue, Aug 17, 2010 at 6:38 PM, Bryson Eugene Hilton <
***@***.***> wrote:

> Yah, I’d try and do a DIY approach. I’m curious. Why a C corp out of
> Delaware? Why not a Utah LLC?
> —
> Full discussion:
> https://island.byu.edu/entrepreneurship/content/how-incorporate-delaware-c-corp
> Manage my subscriptions:
> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
 >

I don’t know much about Utah LLC / Corp. fees, but in California the minimum
annual LLC tax is $800. In Delaware the minimum annual LLC tax is around
 $250.

So if Utah Laws are comparable, I would definitely compare tax rates and
laws. From my research, the only other state that gets the same amount of
web attention to Delaware is Nevada. The startup lawyer defines his reasons
here:
http://startuplawyer.com/incorporation/top-5-reasons-to-incorporate-in-delaware

Also, the startuplawyer recommends a corp over LLC:
http://startuplawyer.com/venture-capital/why-the-corporation-is-king-for-getting-venture-capital

Also here is the link to site I was talking about earlier :
http://www.thefunded.com/funds/item/6085 . This site has some founder
friendly legal docs.

Anyways, these websites are not my opinions, but I have found them useful.

Dan

- Show quoted text -

On Tue, Aug 17, 2010 at 8:50 PM, Bryan C. Bennett <***@***.***
> wrote:

> I agree. The Delaware C-Corp gets a lot of attention, but the simple Utah
> LLC will provide a great solution to most of an entrepreneurs’ concerns. You
> can still file taxes as an S-Corp or other type of entity. Anyway, I think
> an LLC is worth considering. But, really, I *highly* recommend you call
> and have a short conversation with a few different lawyers. The first call
> is usually free and very helpful.
>
>
> On Tue, Aug 17, 2010 at 6:38 PM, Bryson Eugene Hilton <
> ***@***.***> wrote:
>
>> Yah, I’d try and do a DIY approach. I’m curious. Why a C corp out of
>> Delaware? Why not a Utah LLC?
>> —
>> Full discussion:
>> https://island.byu.edu/entrepreneurship/content/how-incorporate-delaware-c-corp
>> Manage my subscriptions:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
>> Stop emails for this discussion:
>> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>>
>
>
> —
> Full discussion:
> https://island.byu.edu/content/how-incorporate-delaware-c-corp
> Manage my subscriptions:
> https://island.byu.edu/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/og_mailinglist/unsubscribe/8229
 >

I hadn’t seen those sites! Very cool, thanks Eddy.


Kyle Mathews

Blog: kyle.mathews2000.com/blog
Twitter: http://twitter.com/kylemathews
Company: http://eduglu.com

- Show quoted text -

On Tue, Aug 17, 2010 at 3:17 PM, Eddy Yujra <***@***.***> wrote:

> Kyle,
>
> Just making sure you know about these awesome (free of charge) counseling
> agencies:
>
> http://www.delawaresbdc.org/ Small Business Development Center - Delaware
> http://www.scoredelaware.org/ SCORE - Counselors to America’s Small
> Business - Delaware
>
> Best wishes finding help to set up your business.
>
>
> —
> Eddy Yujra
>
>
>
>
> On Tue, Aug 17, 2010 at 2:40 PM, Daniel Burch <***@***.***>wrote:
>
>> Kyle:
>>
>> A month ago, I found a really cool Start-up form template on an incubator
>> site. I thought I tagged the page, but I can’t seem to find it. I’ll send it
>> to you as soon as I find it.
>>
>> By the way, what is your start-up?
>>
>> Dan
>>
>>
>> On Tue, Aug 17, 2010 at 10:56 AM, Kyle Mathews <***@***.***>wrote:
>>
>>> To answer my own question, I just ran across this “Startup-Up forms”
>>> website where the Orrick law firm has released a number of common legal
>>> forms needed by startups.
>>>
>>>
>>> http://www.orrick.com/practices/corporate/emergingCompanies/startup/index.asp
>>>
>>> —
>>> Full discussion:
>>> https://island.byu.edu/entrepreneurship/content/how-incorporate-delaware-c-corp
>>>
>>> Manage my subscriptions:
>>> https://island.byu.edu/entrepreneurship/og_mailinglist/subscriptions
>>> Stop emails for this discussion:
>>> https://island.byu.edu/entrepreneurship/og_mailinglist/unsubscribe/8229
>>>
>>>
>>
>> —
>> Full discussion:
>> https://island.byu.edu/content/how-incorporate-delaware-c-corp
>> Manage my subscriptions:
>> https://island.byu.edu/og_mailinglist/subscriptions
>> Stop emails for this discussion:
>> https://island.byu.edu/og_mailinglist/unsubscribe/8229
>>
>
>
> —
> Full discussion:
> https://island.byu.edu/content/how-incorporate-delaware-c-corp
> Manage my subscriptions:
> https://island.byu.edu/og_mailinglist/subscriptions
> Stop emails for this discussion:
> https://island.byu.edu/og_mailinglist/unsubscribe/8229
 >

The reason I choose a Delaware C Corp is a) it’s pretty cheap and b) it’s
pretty much de rigueur for any company seeking funding.

To this point I’ve bootstrapped and done fine and it might be that I never
do take on external funding but… there’s no reason to limit that
possibility by incorporating as an LLC vs. a C Corp.


Kyle Mathews

Blog: kyle.mathews2000.com/blog
Twitter: http://twitter.com/kylemathews
Company: http://eduglu.com

- Show quoted text -

On Tue, Aug 17, 2010 at 10:11 PM, Daniel Burch <***@***.***>wrote:

> I don’t know much about Utah LLC / Corp. fees, but in California the
> minimum annual LLC tax is $800. In Delaware the minimum annual LLC tax is
> around $250.
>
> So if Utah Laws are comparable, I would definitely compare tax rates and
> laws. From my research, the only other state that gets the same amount of
> web attention to Delaware is Nevada. The startup lawyer defines his reasons
> here:
> http://startuplawyer.com/incorporation/top-5-reasons-to-incorporate-in-delaware
>
> Also, the startuplawyer recommends a corp over LLC:
> http://startuplawyer.com/venture-capital/why-the-corporation-is-king-for-getting-venture-capital
>
> Also here is the link to site I was talking about earlier :
> http://www.thefunded.com/funds/item/6085 . This site has some founder
> friendly legal docs.
>
> Anyways, these websites are not my opinions, but I have found them useful.
>
>
> Dan
>
>
>
>
>
>
>
> On Tue, Aug 17, 2010 at 8:50 PM, Bryan C. Bennett <
> ***@***.***> wrote:
>
>> I agree. The Delaware C-Corp gets a lot of attention, but the simple Utah
>> LLC will provide a great solution to most of an entrepreneurs’ concerns. You
>> can still file taxes as an S-Corp or other type of entity. Anyway, I think
>> an LLC is worth considering. But, really, I *highly* recommend you call
>> and have a short conversation with a few different lawyers. The first call
>> is usually free and very helpful.
>>
>>
>> On Tue, Aug 17, 2010 at 6:38 PM, Bryson Eugene Hilton <
>> ***@***.***> wrote:
>>
>>> Yah, I’d try and do a DIY approach. I’m curious. Why a C corp out of
>>> Delaware? Why not a Utah LLC?
>>> —
>>> Full discussion:
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>>>
>>
>>
>> —
>> Full discussion:
>> https://island.byu.edu/content/how-incorporate-delaware-c-corp
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>>
>
>
> —
> Full discussion:
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 >

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