C Corp

“So all that to say, today, if I were starting a startup, knowing what I know now, knowing that everyone sells, having seen folks, some folks qualify for QSBS and other folks not because they started an LLC or an S Corp, I personally would do the C Corp, and I …”

“And in fact, with our latest fund that we raised, that we just closed, that fund only invests in C-Corps.”

“I forget the exact percentage, but a meaningful, I think double digit percentage of all C corps created are created with Stripe Atlas.”

“From an investor perspective, especially institutional investors, like they will not invest in LLCs. They'll only invest in C corps because of the complexity.”

“There are times in which you want to have passer entities, and there are times in which you want to have C corps, and that it all ties back to what the cash flows are going to look like. What the ownership structure is going to look like, and then what the eve…”

“Interestingly, I actually find that LPs are quite resistant to that because they, even for like legal reasons and technical reasons, like the, you know, ECI, UBTI type issues, like there's all these things that make it very hard for most LPs to deal with non-t…”

“We've been spending now for the last several years building this practice where we're, I think we're the only venture firms, the only ones that will literally write an equity check Not into a C Corp, right? But effectively into a holding company that represent…”

“So you hold a small business stock, so a privately held company, that's a C Corp, and you have to hold it for 10 or five years, and it has to be valued originally, or the assets of the company, which is the value, has to be fifty million or less. You hold it f…”

“It makes sense to not start your company as a C-Corp if the goal is a business that Pays you cash on the side, but you're not building enterprise value. So let's say you're running Alex Consulting Services LLC or whatever. I tell you, it doesn't make sense to …”

“You can do something that is called a QSBS rollover that actually lets you take the proceeds and invest it in another qualifying small company And then your clock resumes ticking. So let's say you sold the company after three years. You only then have to wait …”

“Every, every company, every software company out there, if you're not a C corp, like change to a C corp immediately. Cause you have to hold for five years as a C corp to get QSBS protection.”

“So if you sell a business, and you've owned the business stock for five years, and it's a C Corp. If you sell your company, the first ten million dollars in sales, or in profit that you make for selling your company, you don't pay taxes on.”

“If you plan to run it for five years and sell it, personally, that's not a bad idea. If you plan to pull dividends out, it's not a good idea because C Corps have double taxation”

“If your eventual goal is to go public, and almost every tech company and startup is eventually to go public, at some point you're going to need to be a C Corp. And if you're going to go public and do an IPO, you're going to need to be a C Corp incorporated in …”

“I just recently wrote a phantom stock plan for a company that's a S Corp and wanted to be able to issue shares to people before it became a C Corp, and there are ways you can do that, but you can't issue real equity, and that's a limitation.”