Project 1: Introduction & Operations · Lesson 4 · 2 minutes
Before we actually start a corporation, it's important to know what one actually is and what it entails. In this video, we go over what starting a corporation means in terms of what comes with it and what your fundraising options are.
It's important to understand what kind of corporation you're going to start - if for no other reason than so that you search the right database through Delaware's corporation division page.
Some terms to know:
Corporation - Specifically we're talking about a CCorp. It's a business that, basically, is taxed as its own entity, separately from its owners. A corporation is the preferred option if you intend to raise money, as it includes things like a board of directors and equity.
LLC - A limited liability corporation. The LLC doesn't require as much overhead as a corporation, but value is determined by percent ownership. It's much harder to raise money, though if you are approached by serious investment opportunities you can convert to a CCorp.
Equity - Shares of your company which you can sell to investors.
Board of Directors - A group of individuals who act as the representatives of the stock/shareholders in a company.