Decision Cluster
LLC vs.
C-Corp.
The Verdict
Start as an LLC.
Unless you have a VC term sheet on your desk right now, there is no reason to be a C-Corp. LLCs are cheaper, easier to manage, and tax-efficient for solo founders. You can always convert later.
The Feature Match
LLC
Pass-Through Taxation: No "Double Taxation." Profits flow to your personal return.
Simplicity: Minimal paperwork. No board meetings required.
C-Corp
Investable: VCs demand Delaware C-Corps to issue stock options.
Double Taxation: The Corp pays tax on profit, THEN you pay tax on dividends.
Our Recommendation
Use a service like Stripe Atlas or Doola to form an LLC.
Focus on getting your first customer. The legal structure is a Vitamin problem, not a Painkiller problem. It's paperwork. Don't let it stop you from selling.
Stop Playing Lawyer.
You are not a lawyer. You are a founder. Exeluma helps you focus on what matters: Product and Sales.