Texas LLC vs Delaware C-Corp

The standard advice for any tech startup is "incorporate as a Delaware C-Corp." But if you are a bootstrapped services business in Austin, that might be terrible advice.

When to use a Delaware C-Corp

If you plan to raise institutional venture capital, full stop. Austin VCs, just like Valley VCs, want standard corporate governance and the ability to easily issue preferred stock.

When to use a Texas LLC

If you are a consulting firm, an agency, a real estate holding company, or a bootstrapped software business that intends to distribute profits to founders rather than reinvesting for hyperscale. A Texas LLC is cheap to set up, avoids double taxation, and simplifies your state filings.