Should we rush to *incorporate* the product – investor lead is asking?

We have built the product under the *protection* (if you like) of my LLC. The LLC is 3 years old, the product is new.

Investor lead is asking if the ‘product’ is already a corporation. Apparently one of the key issues the investors have is the age of the business without any funding? Is this true?

Should I race to urgently incorporate it as a seperate entity? Which we eventually would do. But isn’t it fine to be parked as a ‘product’ under my LLC?

  • If you have product, market fit and customers it is time to incorporate to make the IP ownership clear. Must be a Delaware C. Take a look at The forms to do it yourself are on the Delaware state website. Stock structure is very important two classes, common and preferred.

    Preferred for investors and founders, common for employee options and future investors. Read Mark Susters blog and This week in startups, videos with Scott Walker and @jason.


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