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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

AUGUST 25, 2015

In the tech startup context, you’ll typically choose between a Corporation and a Limited Liability Company (“LLC”). Corporations pay taxes on the money they earn, and LLCs don’t. This doesn’t mean that LLCs go tax-free. When an LLC allocates income to owners (i.e. When an LLC allocates income to owners (i.e.

LLC 100
LLC Technical Review Software Review Limited Liability Company 100
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What type of entity should I form?

Startup Company Lawyer

MARCH 12, 2009

I generally avoid LLCs as most technology startup companies need to grant options to employees and consultants, and there is no easy “off the rack&# method to do this. In addition, the conversion of an LLC to a C corp results in additional legal and accounting expense. Thus, earnings are taxed only once, at the member level.

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LLC Stock Options Preferred Stock Stock 61
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