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What's In A (Corporation's) Name?

Project 1: Introduction & Operations ยท Lesson 4 ยท

Before we actually start a corporation, it's important to know what one actually is and what it entails. In this video, we go over what starting a corporation means in terms of what comes with it and what your fundraising options are.

It's important to understand what kind of corporation you're going to start - if for no other reason than so that you search the right database through Delaware's corporation division page. 

Some terms to know: 

Corporation - Specifically we're talking about a CCorp. It's a business that, basically, is taxed as its own entity, separately from its owners. A corporation is the preferred option if you intend to raise money, as it includes things like a board of directors and equity. 

LLC - A limited liability corporation. The LLC doesn't require as much overhead as a corporation, but value is determined by percent ownership. It's much harder to raise money, though if you are approached by serious investment opportunities you can convert to a CCorp. 

Equity - Shares of your company which you can sell to investors. 

Board of Directors - A group of individuals who act as the representatives of the stock/shareholders in a company.