# 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.

#### C corporation

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.

#### LLC

With Stripe Atlas, you can incorporate a Delaware LLC that is owned by a single founder or a group of founders. Here are a few characteristics that are common to LLCs:

- **Ownership**: Often used by self-funded or small businesses that don’t plan to give equity to employees.

- **Capital**: Common for founders who don’t plan to raise venture capital.

- **Tax treatment:** Profits and losses are passed through to founders by default. This simplifies taxes for LLCs with a single founder in the US. However, if you have multiple founders or a non-US founder, [tax filings can become complex](https://stripe.com/guides/atlas/business-taxes#llc-federal-income-tax).

## 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.

## Next steps

- [Get started with Stripe Atlas](https://docs.stripe.com/atlas/signup.md)
- [Learn more about Section 83(b) elections](https://docs.stripe.com/atlas/83b-election.md)