Which is the best state to incorporate in if you eventually want to finance your startup with angel funding?
I currently have an LLC in my state and not sure if it will be optimal. I went with an LLC since the paperwork is easier and I can file it as a single member LLC for simplicity.
Raising money wasn't part of the plan when forming the LLC. Tax efficiency is also important to me, as is a way of distributing profits to everyone with equity in the business.
You'll need a Delaware C-corporation.
It's what almost 100% of investors will want, if not require.
The main downside to C-corps (which you can't avoid if you're going to be raising money): Somewhat more costly to maintain from a legal and tax filings perspective, and face "double taxation" when distributing profits to shareholders.