« Healthy Ways to Tighten the Corporate Belt | Watch Tim Draper Undress »

Choice of Entity – C Corps, S Corps, LLCs?

We’ve written plenty in the past about choice of entities and which ones might make sense for your particular business, but today we found a cool chart that really summarizes nicely.

Enjoy. 

Related posts:

  1. Can VCs Invest In S-Corps or LLCs?
  2. What Are the Pros and Cons of Investment From a Strategic Entity?
November 11th, 2008 by     Categories: Company Creation    
  • Payam D

    as a follow up to this post, what is the most common type of entities do you usually see when there are multiple founders and multiple VCs are involved?

    • http://www.feld.com Brad Feld

      It’s almost always a C Corp.

  • Mac

    The tiny warning at the bottom should be plastered in a huge typeface across the top. I want to say the chart is handy, but by the time you realize those issues vary from one structure to another, and you understand the ways and reasons they need to be considered, you should also already know the basics that are presented in the chart. It's all the details behind those basics that really matter, and those are unfortunately not easily summarized in chart-form.

    Our tax law is a disaster. (Insert FairTax plug here.)

  • David

    There should be a guide on which to choose. I've read contradicting articles/blogs/reports on every business formation out there and it's all vague.

Beginning in 2005, Brad Feld and Jason Mendelson, managing directors at Foundry Group, wrote a long series of blog posts describing all the parts of a typical venture capital Term Sheet: a document which outlines key financial and other terms of a proposed investment...

Watch Our Video – I’m a VC

AskTheVC is maintained by the four partners at Foundry Group: Brad Feld, Seth Levine, Ryan McIntyre and Jason Mendelson.

Have a Question?

Click here to ask us a question!

VC Bloggers