Photo credit: Unfinished Business movie stock image
Every week someone asks me for advice about a startup job offer. I have no idea why people reach out to me about this. I’m not an expert on job negotiation by any means; but I have done a fair amount of hiring and deal making as an entrepreneur.
This post relays the main advice that I typically share to friends considering their startup offer. Hopefully I can use this post to direct my job-hunting network and save myself some time typing this advice over and over again. 🙂
tl;dr: If you are a startup founder who wants an acquisition, then you probably want to form your company as a C-Corp. This might save you a crazy amount of money on federal and state taxes due to Qualified Small Business Stock.
There are very few things that I regret about how I ran my last startup, Beat The GMAT: my team bootstrapped a highly profitable business over multiple years; built a product that helped millions of people achieve their higher education dreams; and fostered a team culture that was close-knit and fun.
But I do have one serious regret: forming my company as an Limited Liability Company (LLC) instead of a C Corporation (C-Corp).
This little business decision cost me a ton of money when my company got acquired. The reason why: Qualified Small Business Stock (QSBS).