Comments on: What’s The Best Corporate Structure For An Early Stage Company?

By: Corporate Structure | Finance Search

Corporate Structure | Finance Search — Thu, 20 Oct 2011 16:44:08 +0000

[...] 5.What’s The Best Corporate Structure For An Early Stage Company? Retweet What’s The Best Corporate Structure For An Early Stage Company?1 … Brad Feld answers the question What’s the best corporate structure for an early stage company?: There are two logical choices (S-Corp or C-Corp) and a third one (LLC) that pops up occasionally. The best choice depends on the financing path you…… http://www.feld.com/wp/archives/2006/02/whats-the-best-corporate-structure-for-an-early-stage-company.html [...]

By: emile castanet

emile castanet — Fri, 30 Apr 2010 03:29:01 +0000

Can an LLC entity pay salary to its one or three owners as the S Corp. does?

By: Brad Feld

Brad Feld — Thu, 29 Apr 2010 21:38:03 +0000

Sure

By: Cooper_Marcus

Cooper_Marcus — Fri, 03 Apr 2009 19:56:50 +0000

You don't need a C-Corp to take angel money – if it is in the form of convertible debt (which is should generally be!). Instead, stay as an S-corp, make sure the business looses as much money as you personally have invested, take the tax writeoff, then convert to a C-Corp if/when you are ready to raise an equity round.

By: Brad Feld

Brad Feld — Mon, 22 Dec 2008 02:55:03 +0000

You will need to consult your lawyer on this one.

By: Jim Johnson

Jim Johnson — Mon, 22 Dec 2008 02:05:30 +0000

I and a JV partner are purchasing 30 separate properties for development. We were considering holding the properties in 4 separate LLC's, who;s units are owned by a Nevada Holdings Company. We want to know how we can have the profits of the holdings company flow into each of our own Family Foundations 47/53 split profits.

By: Gale

Gale — Tue, 02 Oct 2007 18:52:36 +0000

I am a minority SH in an s-corp and the CEO of this family owned publishing company ( I am not family and own 10%). Recently majority owner (MO)has decided to sell significantly all the assets. I have indicated I would purchase certain assets by redeeming my shares so I can have an ongoing business, relaizing this will be a distribution and could create C-G for value above my basis.

Maybe there is a simple way to do this. My “what if”. S-corp creates a LLC subsidiary and pushes down to it the assets I wish to carry on with, we then re-assign our ownership interests so I end up with 90% to 100% of the o/s in the LLC and family owners pick up a proportionate incease in the s-corp.

Before I go to the attorney have you ever seen this type transaction?

Thanks

By: Drake

Drake — Fri, 03 Mar 2006 21:36:42 +0000

Brad, I am trying to help an entrepreneur set up a distributorship to take US made products–tools– to a large market in asia with a huge need. Start up costs are under $1million (5-10 angels and insiders), with proceeds going to pay for initial inventory take downs, field sales and support, and minimal opex.

Question: what is the best equity structure for this company? We do not foresee a future liquidity event for R.O.C, but rather generation of cash consistent with a distributorship. Would appreciate any thoughts.

By: Business Opportunities Weblog

Business Opportunities Weblog — Tue, 07 Feb 2006 15:43:43 +0000

What’s the Best Corporate Structure For a Startup

Brad Feld the VC: C-Corp: If you are going to raise VC or angel money, a C-Corp is the best (and often required) structure. In a VC / angel backed company, you’ll almost always end up with multiple classes of stock, which are not permitte…

By: Startup Fever

Startup Fever — Tue, 07 Feb 2006 00:49:42 +0000

What’s the best corporate structure for an early stage company?

Brad Feld answers the question What’s the best corporate structure for an early stage company?:
There are two logical choices (S-Corp or C-Corp) and a third one (LLC) that pops up occasionally. The best choice depends on the financing path you…