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Comment on We got a $60k tax penalty for a zero-revenue side project

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Did you incorporate as a C corp or LLC?

C corp in Delaware

Go with S-corp.

Seems like big no-no.

The big reason why C corps are preferable is because S corporation shareholders can only be people -- not other businesses, like VC firms. (S corps also can't issue preferred stock.) An S corporation can't take venture capital without first reverting back to C corp status. But an S corporation can save a lot of money on taxes

https://news.ycombinator.com/item?id=13784

what is the difference?

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