best business formation strategy for IT startup

Question

Hello! IPNEXUS has connected me with some really good expert advice! Thank you for that!

I now have another question that has come up since we are almost finished in developing our first mass market product (app): What is the best way to form/incorporate our company so that we can scale our venture and attract angels/vc? What are the cost/legal fees/taxes? Or main operation is based in Denver, CO.

or

Answers: 1 public & 0 private

Nyall engfield
Patent Attorney

A C-corporation is your best approach to a VC and Angel-friendly corporate formation. C-corps permit the issuance of multiple classes of shares as well as ongoing issuances at a later date. The interest is easily transferable, and C-corps are ubiquitous and familiar for VCs. An LLC ought to be avoided as it may require foreign investors to file a US tax return, which may hamper investment from those sources.

Recent questions