Incorporation for Startups Series
Incorporation for Startups Series: Introduction
Have a great idea for a startup, and have no idea how to get started? Cancel your next meeting and welcome to the Nomad Financial Incorporation for Startups Series!
This is a series, which will be rolling out over the next 6 weeks, will profile the different incorporation options available to you as a business owner. Hopefully by the end of the series, one structure will fit, and you can get your business officially incorporated! If you’re in between structures or still unsure about which to use, no problem. Get in touch with us here and we’ll be happy to walk you through it.
Here are some questions we get often:
- Which type of incorporation is best for raising venture capital?
- Which company formation is best if I am a “bootstrapper?”
- If I am hiring my first employees, what do I need to be protected?
- What is the most inexpensive way to get incorporated?
- How does not being a US citizen affect my incorporation?
As you may already know, picking a corporate structure is incredibly important to the long term viability/sustainability of your business. While at the very early stages it might not be more than a legal designation, down the line, the type of formation you choose can greatly impact:
- Your personal liability for company debts
- Personal taxes
- Ability to take on partners
- Prospect of raising venture capital
You can almost always change how you’ve incorporated your startup, but the longer you wait to do so, the more expensive it can become (and we mean expensive, not to mention that tax restatements that can hit your investors). So we recommend taking a long-term view early and being very thoughtful about which you choose. We will start the series with the simplest structure, Sole Proprietorship.