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We’ve written plenty in the past about choice of entities and which ones might make sense for your particular business, but today we found a cool chart that really summarizes nicely. Enjoy.
We’ve written plenty in the past about choice of entities and which ones might make sense for your particular business, but today we found a cool chart that really summarizes nicely.
Enjoy.
Question: How many shares should I use to incorporate my company? Keep it simple. The more shares you authorize, the more you’ll have to pay in taxes (although these are not large numbers). They key is having enough shares to have the ability to grant all sorts of equity to different people who help your […]
Question: Do VC and Private Equity Funds have to invest in C-Corps, or can they invest in S-Corps and LLCs? Our Take: Most often, C-Corps rule the day. S-Corps can only issue one class of stock meaning that VCs and PEs can not get get the benefits of liquidation preferences and other preferred terms. For […]
(We got two questions that were similar) Question 1: Is it normal to have the founders to have Class A shares, angel investors to have Class B shares, and a Class C pool for employee options. Liquidation preferences have classes B and C funding concurrently, with class A funding last? Question 2: Is there any […]
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