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.

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 customise with a lawyer based on your specific circumstances.

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 31 December are subject to annual tax for that year. Annual tax isn’t prorated. Waiting until 1 January 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.

Company types

Form a C Corporation or an LLC using Stripe Atlas.

Tax implications of incorporating near the end of a calendar year

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