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Delaware C corp vs. NYS S corp for a tech startup in NYC

My research indicates that a Delaware C Corp is the preferred business entity for a tech startup in NYC (registered as a foreign entity in NYS). launch.gust.com seems pretty adamant about this.

However, I spoke with an attorney who suggested a NYS S corp. He reasoned that it saves me from the double taxation, I am unlikely to get funding anyways, and that I can always convert to a Delaware C Corp (by creating a shell company) if the company does take off.

Does anyone have any thoughts on this?

My understanding is that an S corp is a tax designation for a C corp.

I just watched a webinar by David Rose of Gust and his point was that (a) startups don't make any money the first year or two so taxes are not a issue and should not be a deciding factor, and (b) the money spent (losses) during the first years could be a tax deduction later on for the C corp.

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2 answers

do you want to open a tecnology company? do you need a partner?

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do you want to open a tecnology company? do you need a partner?

Report Nilton's answer

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