Startup Company Structure

Feb 24 18 Comments

Assume I have a genius idea for a startup. Something like Netflix if Netflix doesn't exist.

I am working with one other person. I'll be the founder and he will be the first employee.

Also assume that I will have a decent demo and very compelling pitch for investors in 6-12 months, at which point either we raise decent money and quit our jobs, or we potentially drop the idea for now. Until then, maybe we hire another 1 or 2 early employees, but probably not.

I eventually see this as a multi-billion dollar company where I intend to have a dual class structure where I always have super voting shares.

If you accept for a moment that the idea is indeed genius, and that I will be able to convince investors to fund us while allowing me to have super voting shares. What should I do as far as

1) LLC for now and later change to C Corp, or directly C Corp from now?

2) Do I need to set up the dual share structure from now or can it be later?

3) Do I do it directly in Delaware, or start in California (where I live) and then move it to Delaware later?

4) Is it possible I can set it all up myself using LegalZoom or should I definitely use a corporate lawyer?

Any advice is appreciated, thanks!

#startup

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TOP 18 Comments
  • Amazon
    qFTk68

    Go to company page Amazon

    qFTk68
    Netflix exists bro sorry
    Feb 24 3
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    1. c corp day 1
    2. dual structure now
    3. delaware
    4. diy using clerky

    you’re kidding yourself though. ideas are worthless. i can already tell this is a fail, from your overuse on the word “I”
    Feb 24 4
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      anyway get the founders pocket guide series on amazon. even if clerky don’t do dual class you can take what they have and then from those pocket guides you should be able to grasp how to create the dual class yourself. you can still use clerky for all the other bits. their package is actually pretty strong
      Feb 25
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      and i’m not worried about the idea. i’m not calling it a fail based on the idea. i’ve assumed it’s genius, like you said
      Feb 25
  • New
    byd0z6

    New

    byd0z6
    1) C Corp
    2) Now
    3) Delaware
    4) Use Clerky

    And you need a co-founder
    Feb 24 3
    • New
      byd0z6

      New

      byd0z6
      Yes, C Corp from the start. Your company doesn't give a fuck about your side hustle and they won't pay in order to look for your name in some random database.
      Feb 24
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      lol byd0z6 are you my long lost twin
      Feb 24
  • New
    ngDs37

    New

    ngDs37
    LLC to start, convert to c Corp when you're ready for VC $
    Feb 24 0
  • Apple
    yLJG03

    Go to company page Apple

    yLJG03
    I would recommend creating an LLC as your name will be confidential. You can hire people and bootstrap for some time and build the product. You can continue to work at Doordash
    Feb 24 1