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Ask HN: What's your legal business structure and why?

2 pointsby kixxauthover 2 years ago
Within the startup scene &#x2F; indie hacker movement there is plenty of discussion about raising money (or not), marketing, building, hiring, etc. But I don&#x27;t see much about the legal structure of the company.<p>I plan to keep my day job, but there are some things I&#x27;d like to build and invest in on the side: A couple SaaS ideas, maybe purchase some community sites, and maybe take funding someday.<p>LLC or C corp? Can I roll my Roth into it? Does a holding company make sense? What exit pain points could I avoid by structuring it a certain way?<p>What good resources are out there to learn?

1 comment

powerbrokerover 2 years ago
At one point I knew a lot about this. I vaguely remember, from old law school classes, that C Corp. makes it easy to create shares and invite more investors in. Further, it shields the shareholders from direct liability from many miss-deeds of the corporation, so long as the corporate meetings were systematically held, and decision making done per the shares held (usu. for electing board members).<p>Downside, is that taxes are trickier, as theoretically, the corporation is taxed once on profits, and the shareholder is taxed again on making gains&#x2F;dividends. FYI, this is not legal advise, and I&#x27;m quite likely wrong on a point or two.