S-Corp or C-Corp for tech startup engaging with investors but no bootstrap funding?

[luvtogrow2]

Me and 3 other cofounders have been working on a startup for 5 months now. We have a pitch deck, UI/UX prototype, and a full business plan. We are all computer scientists and can easily program our own software for free.

We are very soon pitching to a small VC firm for $25,000 and are talking with 2 other VCs, several angel investors, and potentially Y-Combinator due to some connections we have.

One question I have is whether it would be better to start out as a Delaware S-Corp or C-Corp? we ofc will not be doing an LLC because we are looking for investors. From my research it seems like a C-corp is just an S-corp but with a few less restrictions and MUCH higher taxes.

Considering that we currently have $0 in funding but hopefully will have some soon, which would u recommend to start?

 

[jamesruiz0818]

@luvtogrow2 Just use Clerky.com.

(No affiliation)

 

[dont]

@luvtogrow2 You want a Delaware C-Corp and you want to file it today with or without an attorney. You can hire an attorney to sort things out once it becomes real. Be sure to open a company bank account, too.

Also, I’ve never heard of a VC investing anything less than $100k. Angels do, not VCs. Not sure what your product is, but most developers costs $150k minimum. Good luck!

 

[luvtogrow2]

@dont That particular group is not a VC in the traditional sense. It’s a VC-like group that invests in student projects with $25,000 checks. We are all senior computer science majors graduating from a university this year. They wouldn’t be taking any equity. It’s similar to an interest free loan but we have 8 years to pay it back.

In the post I called it a small VC firm but really that isn’t quite what I meant. My bad haha

 

[dont]

@luvtogrow2 I'm subtly trying to suggest you should increase your raise. You can barely buy a new car for $25k. But it sounds like your team knows what it's doing and I'm just text on the internet