LLC now, Delaware corp later?

Question

Asking HN. I am about to start working on a (currently) 1 person project. I want to form a LLC for liability protection. There may be some customers involved.At the point I find investors / or get significant revenue, I plan just to scrap the LLC, and form a brand new delaware corp. Are there any issues with this?

tlb · Accepted Answer

You can run as an LLC until you want to take outside investment or give employee stock options. Then you'll have to create a new company and transfer the IP to it. In general it's not a problem: lots of startups start as LLCs. YC (and most serious seed investors) can even do the paperwork for you.