#02_general
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Hey everyone- I am looking to chat with someone on the subscription based model. What is the legal entity that needs to be established and if you could share some ins and outs. Thanks!
Hi Rade - you mean what legal entity needs to be established regarding SaaS companies?
Do all subscription platforms come under SaaS?
Not necessarily there are many subscription companies that don't fall under SaaS something like:
Exactly - and is a company like barkbox registered as LLC?
I would not think so since it's a publicly traded company on the NYSE.
They raised over $280M prior to going public so I would assume they were probably a C-Corp at that time
Software companies can technically be structured any way you'd like (LLC, S-Corp, etc.) just depends what your goals are if you're fundraising, etc. But I'm certainly not an attorney so just quoting from what I've seen out there 😅
Thanks - this is great feedback! I appreciate 🙏
You're welcome Rade! Matt Savare or Simon Halberstam might have some better input as well.
Definitely looking forward to connecting with the them!
I've set up a couple of companies. For raising outside capital, do a C corp. Everyone tells you DE but they're expensive and hard to deal with. Wyoming is very founder friendly and advanced in handling crypto companies so have validity now with investors. If you are not raising outside capital and it's just you set up an LLC. You'll have the same decisions -- you'll incorporate in a state that is good on incorporations (DE, WY) then you register as a foreign entity in your state of domicile. Hope that helps. The legal structure is the same for all sectors so no different info for SaaS!!!
That's amazing information @Cynthia Harrington thank you for letting me know. This is what I needed.
👍