Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
All startups need to have a legal entity.
Before you launch your fundraise make sure you have a legal entity filed as you’ll need it for accepting investment funds.
Start with an LLC which is a Limited Liability Corporation.
It’s low cost and easy to file with your Secretary of State.
This should be sufficient for family and friends funding.
Continue with the LLC till later rounds of funding, in which case the investors may want to see a Delaware C-Corporation entity.
Venture Capital and other investors want this structure as their investment documents are set up for such and they are not going to change it.
Tell your investors you will convert to a Delaware C-Corporation and then do so contingent on the funding.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.