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Level 2
posted Dec 14, 2023 5:25:23 PM

Advice: convert CA LLC to Delaware C Corp

My wife & I are building a website that we'd love to grow it. We incorporated as a CA LLC this September and have made $50 after spending about $250 in hosting fees.

 

We found an investor willing to invest $25k in our website, but conditional on us forming a Delaware C Corp. I called a lawyer and got a quote for $3k to file the conversion paperwork.

 

Since our LLC is so simple (50-50 ownership) and new, can I just simply dissolve it and then create a DE C Corp using Stripe Atlas? Do I have to worry about the IP rights of the website for the new C Corp?

 

Would love someone's input. We're just getting 25k and I'm honestly heartbroken I may have to spend >10% on legal fees. I know this is more legal advice & I'm sorry for that

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1 Replies
Level 15
Dec 14, 2023 6:34:57 PM

Use the attorney, particularly since you already have an investor where stock (or debt) needs to be issued and there may be copyright issues, such as the need to protect your design, logos, et al.