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1546-2080 Online :: 1546-203X Print
Nanotech Company Formations: C-Corps, S-Corps and LLCs
Volume 3, Issue 1


Authors:
Edwin L. Miller, Jr., Sullivan & Worcester
Ruben Serrato, Nanogram Corporation

Abstract:
Research and development breakthroughs in nanotechnology are increasingly being commercialized through start-ups. One of the first issues that must be addressed when organizing a start-up is the legal form the entity will take. There are several choices: C Corporation, S Corporation, General or Limited Partnership, and Limited Liability Corporation (LLC). The parameters for the choice include tax efficiency, impact on future financing sources, simplicity, cost and familiarity for the various stakeholders, including employees, financial backers and others. In many cases, start-ups are organized as C-Corps, but it is always advisable to consider the feasibility and desirability of another form.

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