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.