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So has anyone been able to find love here?
Anyone going in on VNET?
Rising Star
Enthusiast
Ever downloaded PNG from Google images? 🥲
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Please talk to a lawyer. There are so many traps for the unwary, from incorporation to IP arrangements to tax implications. Easier to pay the money up front than pay WAY more later to fix. If you want to raise funds, especially anything venture, standard is DE C Corp. Else, LLCs can work. Do not recommend S Corp. (I'm a former corporate lawyer, though out of game long enough to not remember all salient details - and things change, so please engage counsel, it's money well spent).
Mentor
Talk to an attorney. The very basic, oversimplified rule is that if you are going to be a "lifestyle" business where the goal is to grow organically and get a nice income stream, but not try to take investors' money and scale to sell to Kylie Jenner or Lancome (sorry, I don't know squat about makeup 😁), you should form an LLC, probably a New York one since you are in New York (but Delaware works fine too). An s Corp could also make sense for certain self employment tax benefits. Your average local business attorney can handle this, and I believe Stripe Atlas offers an automated solution that might work for you. By the way, if you are a woman and/or a minority, there are some programs out there that may help you with all or some of the legal fees to start a small business.
If you think you will raise money and scale, talk to a startup and venture capital attorney (I am one) or if you're not quite ready to pay for specialist counsel, use Clerky's incorporation package. Though I'd recommend talking to an attorney in your case since it could be that even if you are planning to raise money and scale, an LLC might still have certain tax benefits. S corps don't work for this, for somewhat complicated reasons
LLC is way easier to manage in terms of filings and paperwork. Delaware Corp needs two filings - one in DE and one in your state. You also need to maintain paperwork like board meeting minutes etc which is a pain in the a** if you’re a startup. I’d say start as LLC and convert to S Corp when you’re ready to get investors (investors prefer Scorp)
Mentor
Don't convert to an S-corp (unless a qualified attorney experienced with startups tells you otherwise and explains why it makes sense in your particular situation). That will blow your ability to get qualified small business stock (QSBS) tax treatment on your shares. It also makes life complicated for most institutional investors since tax will now be pass through.
Again, talk to an attorney.
sounds to me like you should go with the limited liability one. Idk much about make up manuf, but it seems like a a lot could go wrong and you should have your a$$ covered
hi! not going to be much help on this question, but would love to hear on what you’re working on! A goal of mine is to start a makeup company so it would be great to hear your experience up until this point
please dm me!
Definitely talk to a virtual CFO and have someone that handles all tax and finance related aspects of hour business so you can really focus on what you need to. I use Dukhon Tax for both my boy businesses.
Of course. One is a marketing agency and the other is a CBD skincare line.
thank you all. Definitely will get in touch with a startup lawyer. Please pm me if you're in the field and reading this!
You should go with a C corporation in Delaware or Nevada. Then you should hold all of your assets in a limited liability company.
Coach
Why hold assets in an llc?
What’s the best business checking account and credit card for a small lifestyle business?
It's been awhile but I used to work in skincare that included SPF's. They are "heavily regulated" because they are considered Over The Counter, (OTC), products. To overly simplify, the more harm a product can cause due to quality issues the more it is regulated. For items with SPF if the rating is not accurate someone could potentially get a severe sun burn.
The items to watch out for would vary depending on if you planned to do your own manufacturering or if you used a company to manufacture for you.
Getting it wrong can result in a recall and/or lawsuits, plus tarnish your brand.
Just like with business entity legal advice it's better to pay upfront to get set up right than pay more to fix it. This will cost you a lot more to do it wrong.