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by pbiggar 3196 days ago
If you are planning to do equity funding, the $500 to Atlas is cheaper than the $4000 to a lawyer to convert your LLC to a C-corp later.

Disclaimer: happy Atlas user who did previous C-corps the old-fashioned way and did not enjoy doing that.
1 comments
graycat 3196 days ago
Then start with an LLC and, when have an equity check in hand, don't count those chickens before they hatch, use Atlas to convert the LLC to a C-corp or, simpler, just use Atlas to form a C-corp and f'get, or some such, about the LLC.
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pbiggar 3196 days ago
Often, that LLC will have important IP that isn't trivial to convert. (Hence paying the lawyers way more than $500 to fix it).

What's the advantage of doing it in 2 (expensive!) steps if you know the plan already?

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graycat 3196 days ago
> convert?

I'd wonder about that. But, all the IP is on just a little portable, USB interface, hard drive I own, so I bring a copy with me when the C-corp is formed? Shhh, don't tell anyone!

For two steps, easy: For a solo founder and 100% owner, an LLC is a total sweetheart and a C-corp. with a BoD is a forever continuing total pain in the back side. So, very much do not want a C-corp until need it for equity funding where the founder is no longer 100% owner, and such equity funding is chancy. Equity funding is not easy to get.

I'm not counting on equity funding and, really, have given up on it -- by the time VCs will write me a check, I will long since have not been willing to accept it. My startup is deliberately designed to get to plenty of money for growth with just my labor and my thin checkbook. And, I'd greatly prefer to remain 100% owner of an LLC.

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csomar 3196 days ago
You seem to be complaining about a product that you are not the target market for. The people who setup a C-Corp from day 1 are interested in raising funds, potentially multiple funds; and later exiting. (or IPOing if they are lucky).
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graycat 3196 days ago
They should have the equity check in the bank before they setup a C-corp.
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graycat 3196 days ago
Besides, one option is to leave the intellectual property in the LLC and lease it to the C-corp!
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