A Startup Guide to Selecting the Right Corporate Entity Structure

Selecting the corporate structure is the first major legal decision for any founder. The structure dictates your fundraising capacity, compliance overheads, and personal liability.

Private Limited vs. LLP

If you plan to raise institutional venture capital, a Private Limited structure is non-negotiable. Venture capitalists require equity shares to invest. However, if you are building a bootstrap business or service firm, a Limited Liability Partnership (LLP) offers lower compliance costs and zero dividend distribution tax issues.