Company types
Form a C corporation or an LLC using Stripe Atlas.
With Stripe Atlas, you can incorporate a Delaware C corporation (C corp), a Delaware Limited Liability Company (LLC), or a subsidiary (also a C corp). Each entity type is suited to different business needs. This guide outlines what you need to know about each entity.
With Stripe Atlas, you can incorporate a new Delaware C corporation or a subsidiary of an existing corporation. Here are a few characteristics that are common to C corporations.
- Ownership : Used to grant equity to employees, advisors, and investors.
- Capital : Preferred by institutional investors who might be unable to invest in LLCs.
- Tax treatment : Can typically use early startup losses to offset future taxes, subject to some limitations.
If your company is a subsidiary of an existing company, you need to issue shares to your parent company after incorporation. Atlas provides a standard template that you can customize with a lawyer based on your specific circumstances.
Tax implications of incorporating near the end of a calendar year
If you plan to incorporate near the end of the calendar year, consider the tax implications. C corps and LLCs operating in Delaware before December 31 are subject to annual tax for that year. Annual tax isn’t prorated. Waiting until January 1 to incorporate could save you a full year of Delaware annual tax.
Your company might also owe federal corporate income tax or taxes in other states and countries. Consult with a tax professional to understand the tax implications of incorporating near the end of a calendar year.