Delaware LLC vs C-Corp

Choosing between a Delaware LLC and C-Corporation is one of the most important decisions a startup founder will make. Each structure has distinct advantages depending on your business goals.

Delaware LLC

Best for: Solo founders, bootstrapped businesses, real estate, consulting

• Pass-through taxation (no double taxation)
• Flexible management structure
• Fewer formalities and compliance requirements
• Cannot issue stock options easily

Delaware C-Corporation

Best for: VC-backed startups, companies planning to go public

• Can issue multiple classes of stock
• Preferred by venture capital investors
• Eligible for QSBS tax exclusion
• Subject to double taxation

Key Comparison