Hacker News Reader

HNHacker News

Top New Best Ask Show Jobs

Comment by edoceo | Hacker News Reader

Parent Full thread

edoceo·

Careful with Delaware, shares and taxes.

If I hadn't consulted a CPA I would have had a large tax burden.

This is a pretty good write up:

https://www.cooleygo.com/so-you-owe-thousands-in-delaware-fr...

View on HN

According to that article it seems specifically related to corporations (C or S), but the parent comment advocated for LLCs.

What's the advantage of Delaware if you want to do an LLC?

Delaware is regarded as business friendly, investors like it (more so than eg:North Dakota). Investors means C-Corp.

You get to pay Delaware tax as well as registered foreign agent fees in your home state.

You also get to pay your home state tax.

It’s investor friendly, if you have investors.

If you are going the LLC route you are basically eschewing investors. Thus, this isn't an advantage.

Yes and no. LLCs can carry investors, and Delaware is an advantage to some. LLCs can be publicly traded.

The typical LLC has few or no investors (that are not managers or members), and it’s unusual for Delaware LLC law to provide much advantage over any other state in that case. YMMV.

> The typical LLC has few or no investors (that are not managers or members)

Members are the LLC analog of stockholders in a corporation; if there were equity investors (passive or not) in an LLC then they would, by definition, be members.

Yes, I structured that ambiguously. “...no investors that are not ... members” is true.

“Few...investors that are not ... members” is impossible, as you note.

Reply on news.ycombinator.com