Rob Walling

So all that to say, today, if I were starting a startup, knowing what I know now, knowing that everyone sells, having seen some folks qualify for QSBS and other folks not because they started an LLC or an S corp,

I personally would do the C Corp and I would take the double tax hit in the short term.

And I would be looking to sell for, assuming I'm looking to sell for 10 to 30 million, 10 to 40 million, somewhere in there.

That's kind of a, seems to be a reasonable target number for a lot of Tennessee folks.

And that's the tact I would take.

Now, is that the right answer?

No.

There is no right answer for this one.

This is not even a rule of thumb.

You know how I give guidance?

Don't do B2C two-sided marketplaces that take a percentage of GMV, all that stuff.

This is not that.

This truly is.

If you want to start a lifestyle business and you think you might just take out dividends over the long term or you're not going to keep it for at least three years or your exit's going to be small enough that it's an asset purchase agreement, there's all these things that could go the other way that will make...

maintaining a C-Corp a pain in the ass for you, then you shouldn't do it.

And that's, I think, really what it comes down to.

But the majority of companies we back with TinySeed are C-Corps.

And in fact, with our latest fund that we raised, that we just closed, that fund only invests in C-Corps.

And there's a bunch of reasons for that.

It actually makes everything simpler for us.