Running a Texas LLC for 2 years now, around $30K MRR. Got interest from an angel who wants to put in $150K but says I need to be a Delaware C-corp first.
How much should I expect this to cost and how long does it take? Want to know if we can close before year end.
big warning: don't skip the tax planning. LLC-to-corp conversion can trigger a taxable event if done wrong. if your LLC has appreciated assets or retained earnings you could owe taxes on the conversion itself
one more thing - once you're a C-corp you can do 83(b) elections if you issue restricted stock to cofounders or early employees. wasn't possible as an LLC. small silver lining of the conversion hassle
PSA: many consumer protection statutes allow recovery of attorney fees and treble (3x) damages. This means even if your actual damages are small, the statutory multiplier can make it worthwhile to pursue. Check your state's consumer protection act.