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Old 04-26-2013, 01:39 PM
 
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First off, I have formed plenty of S Corps and LLCs. However, I have been brought in to consult with a tech startup that will get off the ground with VC money. One of the requirements of the VC peeps is that the corporation not be pass-through, have Class A and B stock, etc. etc.

I've done a lot in my career, but never formed a C Corp before. I have an excellent attorney on this, but want to know what your collective experience on this might be.
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Old 04-28-2013, 12:30 PM
 
Location: North Idaho
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Stock? Prepare to spend some money to get the whole thing set up.
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Old 04-28-2013, 01:19 PM
 
28,900 posts, read 48,742,111 times
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Originally Posted by oregonwoodsmoke View Post
Stock? Prepare to spend some money to get the whole thing set up.
Well, this would have VC capital attached to it. So no problem there.
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Old 04-29-2013, 09:41 AM
 
Location: Indianapolis
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Tech startups usually intend to pubicly list stock after a few years. If they are pass-through, then it makes that much more difficult. C-corp is the way to go here. Good luck, it looks like you are already on the right track with VC and the attorney.
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Old 04-29-2013, 04:58 PM
 
1,097 posts, read 3,700,530 times
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Quote:
Originally Posted by cpg35223 View Post
First off, I have formed plenty of S Corps and LLCs. However, I have been brought in to consult with a tech startup that will get off the ground with VC money. One of the requirements of the VC peeps is that the corporation not be pass-through, have Class A and B stock, etc. etc.

I've done a lot in my career, but never formed a C Corp before. I have an excellent attorney on this, but want to know what your collective experience on this might be.
An S corp is just a corporation that files a subchapter S election. The underlying corporate form is the same. So if you've formed an S corp, you've formed a C corp. The only real difference you're talking about here is having different classes of stock, but this isn't very complicated - any competent attorney should be able to help you out with this one.
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