Guides for starting a US company

LLC or C-Corp?

An LLC is a pass-through entity — profits flow to your personal tax return, and it's simpler to run. That makes it a common choice for solo founders, freelancers, and small e-commerce businesses.

A C-Corp is a separate taxable entity that issues shares, which is why it's the standard structure for startups planning to raise venture funding. It supports things an LLC generally can't: multiple classes of stock, employee equity grants, and the 83(b) election.

Why Delaware

Delaware has a dedicated business court (the Court of Chancery), well-established corporate case law, and investors who are used to its terms — which is why most VC-backed startups and a large share of public companies are incorporated there, regardless of where they actually operate.

What to prepare before you file

Filing goes faster when you have these ready:

• A few name options, in case your first choice is taken
• Full legal names and addresses for every owner or shareholder
• A short description of what the business does
• A US mailing address for official mail, if you don't already have one

Your first 30 days

Once you're formed, get your EIN, open a US business bank account, and sign your operating agreement (LLC) or bylaws and initial board consent (C-Corp). If you're issuing founder stock in a C-Corp, the 83(b) election has a strict 30-day filing window with the IRS — don't miss it.

Staying compliant year to year

Most states require an annual report and fee to keep your company in good standing, and Delaware companies owe franchise tax every year regardless of revenue. Keep your registered agent information current — a missed notice can put your company out of good standing without you realizing it.