When to Incorporate Your Startup

Incorporation creates a legal entity separate from you. It protects your personal assets and enables things like hiring, contracts, and fundraising. Here's when to do it and what to choose.

When to Incorporate

**Before revenue** — Once you're making money, you need a structure. Don't mix personal and business.

**Before contracts** — Signing deals? You need an entity. Customers and partners often require it.

**Before hiring** — Employees need to be paid by a company. W-2s, payroll, benefits.

**Before raising** — Investors invest in a company, not you. C-corp typically required for VC.

Why Incorporate

**Liability protection** — Company's debts and lawsuits don't pierce your personal assets. Critical.

**Tax structure** — LLC pass-through vs. C-corp. Different implications. Accountant helps.

**Investor requirements** — VCs want C-corp. Delaware. Stock structure. Know before you raise.

LLC vs. C-Corp

**LLC** — Simpler. Pass-through tax (profits flow to you). Good for solo founders, small teams, service businesses. Flexible.

**C-corp** — For VC funding. Stock options. Delaware typical. More structure. More paperwork. Required for most institutional investors.

Before You Incorporate

**Check name** — Is it available? Secretary of state. Trademark search. Domain.

**Understand costs** — Filing fees. Registered agent. Annual reports. Varies by state.

**Registered agent** — Required. Someone to receive legal documents. You or a service.

**Annual filings** — Don't forget. States require annual reports. Fees. Stay compliant.

Get Help

**Lawyer** — For structure. LLC vs. C-corp. Operating agreement. Bylaws. Don't DIY critical decisions.

**Accountant** — For tax implications. S-corp election? Payroll? Get advice.

**Don't delay** — If you're signing deals, hiring, or raising—incorporate. Doing it late creates mess.

**Next Steps**: Use [Luxara](/app) to plan your launch. Incorporation is part of legal setup.

Turn this guide into an execution plan

Use Luxara to compare directions, estimate costs, and export a practical roadmap.