Launching a Start-Up? Consider Forming a Corporation Instead of an LLC
Author: Kaoru C. Suzuki.; Jonathon H. Vinocur.
Source: Volume 35, Number 04, Summer 2018 , pp.35-40(6)
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Abstract:
Different forms of legal entities come with different advantages and disadvantages. The authors provide a summary of considerations high-growth start-up company founders should keep in mind when evaluating the most common company structures--the corporation and the limited liability company—and explain why the former is preferable for these types of ventures.Keywords: start-up, limited liability company (LLC), legal business entity, institutional investors, Delaware Limited Liability Company Act, Qualified Small Business Stock (QSBS), venture capital, investment funds
Affiliations:
1: Thompson Hine LLP; 2: Thompson Hine LLP.