VS:VS-USA Registration Issues

From NMSL

--Wamageed 00:50, 30 June 2008 (PDT)

Which state is better for registering startups?

Two Md. state agencies top national list of venture investors http://findarticles.com/p/articles/mi_qn4183/is_20040721/ai_n10062486

What's the best state to incorporate in? http://slashstar.com/blogs/tim/archive/2007/07/23/what-s-the-best-state-to-incorporate-in-hint-delaware.aspx

What is the Best State of Incorporation? http://www.askthevc.com/blog/archives/2007/05/what-is-the-bes.php

Top 5 Reasons to Incorporate in Delaware http://www.thestartuplawyer.com/incorporation/top-5-reasons-to-incorporate-in-delaware

Conclusion Regarding Where to Register VS-USA

My conclusion is that for the time being it is probably better to stay in MD because:

  • MD has a number of funding opportunities for startups
  • MD will probably be the home of the angel investors
  • I work with an MD institution and we will be able to obtain joint Univ./VS-USA funding
  • In the future, we can move the registration to Delaware (as per our discussion with Jim Chung)

LLC, C-corp or S-corp

  • Forming a Company

http://www.gaebler.com/C-Corp-Versus-S-Corp.htm

  • LLC vs. S-Corp vs. C-Corp (The 3-Minute Version)

http://www.simplesubjects.com/tax/llc-vs-s-corp-vs-c-corp-the-3-minute-version.html

Conclusion Regarding What Kind of Corporation

  • It appears to me that the best type of registration is S-corp for now since it offers some tax advantages
  • This remains pending until we talk to the corporate lawyer later this week