Jim Ryan, start-up columnist for The Journal of Robotics, Artificial Intelligence & Law, authored the article “Fiduciary Basics for Founders and Investor Board Members” on what start-up founders should consider when deciding on which type of business entity to form.
When deciding on which type of business entity to form, founders should consider issues such as: legal liability for the business’ obligations, tax treatment, equity incentivization of employees, and financing efficiency. For most founders looking to build a traditional venture-style company, the decision usually comes down to picking either a corporation or a limited liability company (LLC).
Read the full article.