• July 2018
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What is the best company structure for IT Services company?

What type of entity is best for any particular new business all depends on your goals, what industry your company is in and an assortment of other variables. Considering that each company has its own unique blend of strengths and challenges, a knowledgeable startup attorney is the best resource to figure out what structure will best serve your company’s needs and objectives.

Although you state that there has been “no VC investment ever,” what about your plans in the future? An LLC or S-Corp is not going to work for VCs and an increasing number of angel investors who all prefer C-Corps for legal and tax purposes. Regarding incentivizing employees, an LLC allows you to grant membership interests and an s-corp allows you to grant stock to up to 100 shareholders (but only one class of stock). An LLC would probably best to retain stock and control for its founders. These are all generalities though!

Feel free to check out LawTrades for additional guidance about structuring your startup. You can also PM with any questions you have about how and where to form your company, and any related issues. Best of luck!

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