Incorporation

Incorporating is the step you take where everything begins to feel real—where you see the metamorphosis from idea to company take shape.

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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:

LLC (Limited Liability Corporation): Primarily for sole-proprietorships or partnerships that will not take venture money

S-Corp: Significantly more complicated than LLCs but aren't subject to self-employment taxes. Not recommended for venture-backed startups

B-Corp: Benefit corporation that is legally required to consider impact on community and environment (though they can still be for-profit)

C-Corp: Taxable entity that allows multiple types of stock and is a requirement for an IPO

Incorporation suggested vendors

Incorporation suggested vendors

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Clerky

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A simple, cheap, and fast solution. For less than $1,000 and in less than a week, you can get your company incorporated.

Stripe Atlas

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For $500 and about a week, they will set up a Delaware C-Corp. They also provide additional tools and templates.

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When to incorporate

Types of incorporation

Incorporation suggested vendors

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