Why I Like S Corporations Better Than LLCs As An Entity Choice For Technology Startups
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"I like S corporations better than limited liability companies as a choice of entity for technology startup companies for the following reasons.
1. S corporations can engage in tax free reorganizations, such as tax free stock swaps; in contrast, limited liability company owners have to pay tax on stock received in such transactions.
2. S corporations can grant traditional types of employee equity, like stock options, more easily.
3. S corporations can more easily convert to C corporations in the event of a venture financing or public offering."
