Simpsonville Startup Attorneys & Lawyers

Key Takeaways

• LLCs and C Corporations differ significantly in tax treatment, ownership structure, and growth potential.
• C Corps may be better for startups seeking investment due to ease of issuing stock and attracting VCs.
• LLCs are easier to manage and more flexible in profit distribution and structure.
• Tax implications vary: LLCs offer pass-through taxation, while C Corps may face double taxation but benefit from reinvestment strategies.
• International business owners may prefer C Corps for credibility and ease of foreign ownership.

LLC Versus C Corp: What Is It?

An LLC is a business entity that is legally separate from its owners, who are known as "members." An LLC can have one member or many members.

A C Corporation refers to any corporation taxed separately from its owners. Unlike S Corporations, taxing of C Corporations occurs twice, once on the earnings and again on the salaries of the owners.

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What is a Sole Proprietorship?

A sole proprietorship is a business with a single owner. It is the dream for many people. These businesses, which are not registered as an LLC (limited liability company), a partnership, or a corporation, have the benefit of flexibility. Sole proprietors can work as freelancers — independent contractors — or they can run physical, on-the-ground businesses. 

Often, home-based businesses are sole proprietorships. There are 23 million of these in operation today, vastly more than any other traditional forms. This sort of business carries dangers with it, and it's important to understand them so you can avoid pitfalls in bookkeeping, taxes, and other potential liabilities.

Sole Proprietorship vs. Incorporated Business

There's one major difference between a s

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Key Takeaways:

• Reverse vesting secures a company’s interests by ensuring founders and key stakeholders stay engaged for a defined period.
• It differs from traditional vesting as the shares are owned upfront but can be reclaimed if terms aren’t met.
• Essential elements of reverse vesting agreements include cliffs, repurchase rights, and accelerated vesting clauses.
• The practice benefits investors, attracts funding, and maintains founder alignment with company goals.
• Reverse vesting agreements must balance fairness and tax implications for founders and

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