Creating a legal entity for your startup will establish much-needed separation between you and your business. Shielding your personal assets is the first and foremost reason to think about incorporating.
But let’s face it. When it comes down to choosing a business structure, small business owners are typically concerned about one thing: taxes.
There are a whole host of reasons to incorporate as a C Corporation. For example, the C Corp is the preferred structure if you intend on seeking VC funding or taking the company public. But forming a C Corp involves more paperwork, legal fine print and potential double taxation.
An interesting article on SiliconValley.com describes the current landscape of VCs in Silicon Valley.
From the article:
Ever since the global stock meltdown of 2008, talk has simmered that the venture capital industry is headed for a shakeout that will result in fewer firms to fund startups.
But even as new numbers from the National Venture Capital Association show further evidence of consolidation, it’s increasingly clear this will be a quiet revolution, not a bloodletting.
“Venture firms don’t really die,” said Ashmeet Sidana of Menlo Park’s Foundation Capital. “They just fade away.”
With the pension funds and endowments that invest in venture firms becoming more choosy, many VCs are using a variety of tactics to stay afloat until — they hope — the stock markets become more receptive to initial public offerings.
Feliene Hermans, CEO of Introtron, was interviewed on ‘De wereld draait door’, a popular TV talk show in the Netherlands. Her company participated in last year’s Silicon Summit Bootcamp organized by the Consulate General of the Netherlands in San Francisco. Fast forward to 9:14 minutes for Feliene’s part.
I/O Ventures will soon start a new program to assist startups to take advantage of their experience leading teams, building great products, raising money, negotiating mergers and acquisitions, and scaling infrastructure; all with the hope that you dramatically improve the startup’s execution and time-to-market. Deadline to enter is January 16.
Thinking about starting your business in the Valley? Could there be a better start of the new year? Serial entrepreneur and Stanford professor Steve Blank gives a free online class which will teach you how to turn a great idea into a great company. Mr. Blank also was part of last year’s Silicon Summit Bootcamp, organized by the Consulate General of the Netherlands in San Francisco. Visit The Lean Launchpad website to enter and take part in this highly recommended class.
