Is It a Good Idea to Form a Corporation?

You can't raise real money for your start up without forming a corporation first. Even though llc are better for optimizing taxes, the vast majority of angels and v c firms will not invest in an llc. So if you plan to fund raise from people other than a small group of your friends and family, your start up needs to be a corporation. The coating of the corporation is the correct repository for all the intellectual property that you and your co founders are creating.