When starting a new business, resist the urge to immediately form a C corporation just because you may seek investors later. C corps have tax and compliance drawbacks.
For early stage bootstrapping, an LLC provides liability protection while avoiding double taxation. You can always convert to a corporation down the road if needed.
Don’t set up an inefficient C corp structure for something that may or may not happen. Wait until you actually land VC funding, then switch over.
Also consider how soon you need outside funding based on profitability projections. If planning for long-term viability without investor cash, an LLC may suit better.
Weigh factors like tax implications, costs, and flexibility when choosing an initial entity. Start with an LLC to preserve cash, then assess conversion once future funding materializes.
