Company formation

How to change LLC to Delaware or C/S corporation - is it even advisable?

Jai Kumar Entrepreneur and Technology Leader - Passionate and Dream Chaser (Get things done guy)

November 20th, 2015

I have an LLC and I recently started my new venture as d.b.a (doing business as), with similar business area. Is it a good idea to do so? Or should I convert it completely to Delaware corp or C/S corporation or start a fresh Delaware/C/S corp.? I will be bringing co-founders and investors, so equity sharing will come in the picture. Hence keeping that requirement in mind, what is the best advice? Also what are the trade-off?

Also anyone has any recommendation for an affordable and reliable CA in San Francsico Bay Area? I would greatly appreciate any lead. 

Zhenya Rozinskiy Partner at Mirigos

November 21st, 2015

If you are looking to bringing investors you pretty much have no choice. They expect a Delaware Corp and most will not invest otherwise. LLCs are difficult with equity shares so Corp is the way to go. S corp make sense for a small company with a number of shareholders under 75. All must be US residence and only one class of shares is allowed. You are probably better off with a C corp.

you should definitely talk to an attorney to make sure it gets done right. I would recommend Alex Volchegursky 415-986-4000 in SF Bay Area.

Jai Kumar Entrepreneur and Technology Leader - Passionate and Dream Chaser (Get things done guy)

November 21st, 2015

Thanks Zhenya! I will check with him.