S-Corp and C-Corp formation for startups planning to raise investment, issue employee stock options, or operate as a traditional US corporation. Delaware is the standard for venture-backed companies.
A pass-through entity — profits and losses pass directly to shareholders' personal tax returns. Avoids double taxation. Limited to 100 shareholders, all must be US citizens or residents. Best for small to mid-sized businesses wanting corporate structure with tax efficiency.
The standard structure for venture-backed startups. No restrictions on shareholders, nationalities, or stock classes. Subject to corporate income tax, but allows unlimited investors, preferred stock, and employee stock options (ESOP). Delaware C-Corp is the industry standard for VC-backed companies.