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Should a tech startup incorporate as an LLC, a C-Corp, or an S-Corp? If so, why?

Vanessa Kruze, CPA, is a leading expert in startup taxes and tax compliance. Her team at Kruze Consulting has filed thousands of tax returns for companies that have raised billions in VC funding, and her work has been diligenced by leading VCs, attorneys, and M&A teams at the largest technology companies.

Vanessa Kruze, a highly-experienced CPA, brings valuable tax expertise to startups, drawing from her rich background at Deloitte Tax and as a financial controller for a $20 million startup. As the leader of Kruze Consulting, recognized multiple times in the Inc 5000 list, she specializes in navigating the complex tax landscape for startups. Her firm is known for delivering precise and strategic tax solutions, delivering tax credits utilizing advanced tools to ensure compliance and optimize tax benefits for startups throughout the United States.

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If you are raising Angel or VC capital, absolutely incorporate as a C-Corp. LLC’s and S Corps create tax problems for Venture Capital Funds and their institutional investors. Don’t go there. File as a Delaware C-Corp. Every major startup law firm will help you do this quickly and cheaply.

At Kruze Consulting, we see founders mess this up all the time. Please, work with a reputable startup law firm like Goodwin, Wilson, Orrick, Gunderson or the many others in the startup ecosystem. A good startup lawyer has a simple incorporation package they will take you through. It’s cheap, easy and keeps you from making simple mistakes like incorporating any other way but as a Delaware C Corp.

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State & Local Taxes

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