The choice between an LLC and a corporation has long-term implications for fundraising, taxation, and exit.
Key Considerations
If you’re planning to raise venture capital: Delaware C-Corp is typically required. VCs have structural preferences and tax considerations that make LLCs impractical for their funds.
If you’re bootstrapping or raising from angels: LLCs offer more flexibility and potential tax advantages, though they can be converted later if needed.
If you’re a solo founder: Consider your long-term plans. Starting as an LLC and converting later is common but not free.
The Bottom Line
There’s no universally correct answer. The right structure depends on your specific circumstances, goals, and timeline.