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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

One of the first actions you will take with your startup is to organize your company a separate legal entity to protect yourself from personal liability for the company’s debts. In the tech startup context, you’ll typically choose between a Corporation and a Limited Liability Company (“LLC”). Verdict : LLC.

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Business Prenup: What To Do Before You Start A Company With A Partner

YoungUpstarts

For example, an attorney can assist with issues concerning corporate formation (such as the pros and cons of corporations, limited liability companies and other structures) that may impact liability. If you stop working for the company, how will that impact your voting and distribution rights?

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What is a Social Enterprise?

Up and Running

An excellent example of a social enterprise is The Empowerment Plan —an organization that hires people currently living in homeless shelters to create a combination winter coat, sleeping bag, and over-the-shoulder bag, which is then distributed to the homeless of Detroit free of charge. that social enterprises can take.

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Establishing and Starting a New Business from Home: The Ultimate Guide

Women Entrepreneurs Can

For example, are you a sole proprietorship, limited liability company (LLC), or corporation? Create a Plan Once you’ve decided on the structure of your business, you will need to create a plan for how it will operate. With the proper preparation, you’ll have all the tools necessary to make your business successful.

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Debt Or Equity To Fund Your Start-up: Which Is Better?

YoungUpstarts

Debt financing is the better choice when you prefer to retain control of your operation, and you do not mind the tradeoff of greater risk for higher earning potential. The amount you put toward debt minimizes reinvestment in growth and earnings distributions to owners. Financial Risk Distribution. Operational Control.

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8 Steps to Starting Your Own Business

Up and Running

How will these affect day-to-day operations? Limited Liability Company (LLC). In contrast to the standard plan and the startup plan, is the operations or annual plan. This type of plan is used for internal purposes and primarily reflects the needs of the members of the company. What are your strengths?

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With New 21 Percent Corporate Tax Rate, S-Corps Are Taking A Second Look At C-Corp Status

YoungUpstarts

Certainly, on the face of it, the argument appears compelling for S-Corps to switch, having previously shied away from such consideration given the onerous double tax that accompanied C-Corp status – at both the entity level, and secondly, upon distribution of dividends to shareholders. The operative word here, though, is qualified.

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