Best business structure for a solo founder planning to raise VC within 2 years?

C-Corp (Delaware) is required for nearly all US VC fundraising — form it day one.

INTELLCLUSTER · COMPARE

LLC vs S-Corp vs C-Corp — Best Business Structure for a US Founder

The three most common US business structures each have a very different tax + fundraising profile. Getting this right in year one saves real money.

FIG 1 — THE OPTIONS

01

LLC

02

S-Corporation

03

C-Corporation

FIG 2 — SUMMARY

C-Corp (Delaware) is required for nearly all US VC fundraising — form it day one.
LLC minimizes tax + admin for solo founders who won't raise outside capital.
S-Corp is the middle ground — good for small profitable businesses, unpopular with VCs.

FIG 3 — DEFAULT CRITERIA & WEIGHTS

Tax efficiency at early stage

weight 8/10

VC / investor compatibility

weight 9/10

Administrative burden

weight 6/10

Liability protection

weight 7/10

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