Every founder hits this fork, and the choice shapes how you're taxed, how you raise money, and how much paperwork you live with. Here's what's really at stake, minus the jargon.

An LLC is simpler and more flexible. Profits pass to your personal taxes and upkeep is light, which suits a founder who's bootstrapping or building something self-funded. A corporation is more structure and more upkeep, but it's what venture investors and stock-option plans are built around. If raising from VCs is the plan, a corporation (often a Delaware C-corp) is usually the expectation.

The consequences founders underestimate: taxes and investment. A corporation can face "double taxation," where the company is taxed and shareholders are taxed again on dividends, while an LLC avoids that. But an LLC can't offer the stock structure serious investors want. Choosing the wrong one, then converting mid-fundraise, is costly and slow.

There's no answer that's right for everyone, only the one that fits where your company is actually headed. The mistake is picking by default instead of on purpose.

We help founders match the structure to their real plan, so the choice doesn't come back to bite you during a raise. Free, if you qualify.