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SignalFire's Back-Office Adulting Guide
Incorporation suggested vendors
When to incorporate
When you're ready to get serious about your startup idea, it's time to set up the legal entity of your new company. Make sure to incorporate before you take any money—from anyone.
Pro tip: If you find yourself ready to incorporate at the end of the year, wait until January! You'll avoid paying fees twice in a short period.
Types of incorporation
There are many types of incorporation, but if you plan on raising venture funding,
you should incorporate as a Delaware C-Corp
. Other types of incorporation include:
(Limited Liability Corporation): Primarily for sole-proprietorships or partnerships that will not take venture money
Significantly more complicated than LLCs but aren't subject to self-employment taxes. Not recommended for venture-backed startups
Benefit corporation that is legally required to consider impact on community and environment (though they can still be for-profit)
Taxable entity that allows multiple types of stock and is a requirement for an IPO
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