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Tech Start-Ups: Choosing a legal entity

Choosing a legal entity for your tech start-up is a tricky decision. S-Corps, C-Corps and LLC’s differ in structure, governance, taxation, fundraising, ownership, and employee compensation. Evaluate your company’s goals, for example, will you have foreign investors? Your goals will determine which legal entity best suits your business. C-Corps are favored by outside investors. This is mainly because C-Corps can issue separate classes of stock allowing for various protections