Raise Millions by Hustle Fund VC Page 19 Incorporate your company in Delaware Hustle Fund GP Eric Bahn made a huge blunder when he started his education startup: he formed a California LLC instead of a Delaware C-corp. When Eric later sold this business, his tax accountant told him that if he had switched to a Delaware C-Corp, he would have saved a ton of money on taxes upon his exit. Learn from Eric’s mistake and incorporate your company in Delaware. Here’s why Delaware C-Corps are so advantageous. Benefit #1: Delaware is business-owner friendly Delaware has corporate governance laws that are basically simple rules around compliance and in cases of things like lawsuits. These laws were written to help business owners stay in business. Delaware is a business-favorable state. So it's more relaxed and easier to do business in Delaware in comparison to other parts of the US. Benefit #2: You’ll save a ton of money on taxes There’s this thing called the Qualified Small Business Stock (QSBS). If your business is a Delaware C-Corp and has been around for more than five years before getting acquired, you could potentially be hustlefund.vc / @hustlefundvc