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He forgets arguably the most important consideration - taxes.

C-corps have double taxation and LLCs do not. For every dollar you pay yourself from your cooperation you'll have to pay on the order of 15% more.

If you plan to never make money or just make money by raising money then a C-corps is for you. Other good argument is if you plan on going public. Otherwise strongly consider the tax implications before starting a C-Corp.



If there's a chance you will want to be raising funds or giving out equity than it might be cheaper to form as a C-Corp, temporarily elect S-Corp status, and elect to remove that S-Corp status when need be.


The post addresses this, but double-taxation doesn't usually apply very much to early-stage high-growth startups—most high-growth startups spend their positive cashflows for growth and thus don’t have any positive net income to pay taxes on.


If you're raising investment and burning through money, you won't be paying taxes anyway, so it doesn't really matter.




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