Verified answer

You need to talk specifics with a CPA or other official in the know if you really want to look professional. This will probably cost you less than 1000$ and you would need to pay anyway to get incorporated. They will make sure you are fully meeting all state/federal requirements. I say this because it all really depends very much on your status (whether you will be a the sole owner or whether your investors will take some ownership percentage of the company) and what exactly your company would be doing. But as a reference, I would say look in to LLCs first, because you woulnd't have double taxes like a C Corp, and LLCs are 90% of the time a better bet for sole proprieters than S corps.

Since you are looking for investors your best bet is a corporation. An S corporation is nothing more than a regular corporation that elects to file for federal taxes as an S corporation.

Be aware that most investors want to see an "exit plan". They are looking for a way to get their profits out of a business. A common exit plan is to take the corporation public and have the investors sell some or all of their shares at that time.

Hope this helps

Jerry-the-bookkeeper

I bought a book that explains the differences very well. THe book is:

Corporation Small Business Start-up Kit

ISBN 10: 1-892949-06-7

ISBN 13: 978-1-892949-06-6

BY Nova Publishing Company.

Investor may want a piece of your business to control the money. They can help you grow. Beware of the grow fast grow big investors.