+Should my AI startup be an LLC or a C-Corp?
If you plan to raise venture capital — and most AI startups do — you'll want a Delaware C-Corp. It's what VCs expect, and it supports stock options for your engineering team. If you're building a consulting practice or bootstrapping, an LLC is simpler. Lovie walks you through both.
+What does the Lovie plan include for AI companies?
Everything. One price, no add-ons. Whether you're a solo founder or a team of 10 engineers.
+Do I need a company formed before applying to Y Combinator or other accelerators?
Most accelerators strongly prefer — or require — a formed entity before your batch starts. A Delaware C-Corp in place shows you're serious and makes the SAFE process smoother. Get formed now and focus on the application.
+What about AI-specific regulations and compliance?
AI-specific rules — like the EU AI Act, HIPAA for healthcare AI, or sector-specific licensing — are separate from business formation. But you need your entity in place first.
+Can Lovie help international AI founders form a US company?
Yes. Most global AI startups raising US venture capital form Delaware C-Corps. Lovie handles the entire process remotely. No US address, SSN, or in-person visit required.
+What about issuing stock options to my engineering team?
A C-Corp supports stock options (ISOs and NSOs), which matters a lot for recruiting AI engineers. Lovie handles the formation. For option plans and 409A valuations, you'll work with a startup attorney or a platform like Carta after you're incorporated.
+Do I need IP assignment for my AI models and datasets?
Yes — investors will want all intellectual property properly assigned to your company. That's separate from entity formation. Once Lovie forms your company, you'll need to execute IP assignment agreements with all co-founders and contributors.
+Can I form a company for an AI research lab or non-profit?
Lovie forms LLCs and C-Corps for all kinds of AI organizations — commercial startups, research labs, consulting practices, and more. For non-profit AI research organizations, entity formation is step one before applying for tax-exempt status.
+How long does formation take?
Lovie submits your filing as soon as you approve it. Delaware typically processes within 1-3 business days. Wyoming often processes same-day. Your entity should be ready well before your next investor meeting.
+How does billing work?
$29 one-time. That covers formation and filing prep; registered agent with digital mail is $79/year for your company. State filing fees are paid separately, directly to your state.
+Should an AI startup form as an LLC or a Delaware C-Corp?
If you plan to raise venture capital or issue equity to early engineers, a Delaware C-Corp is the industry standard for AI startups. Investors prefer C-Corps due to favorable tax treatment under QSBS (Section 1202) and established corporate governance structures. However, if you are bootstrapping a profitable AI tool or API wrapper, an LLC offers simpler pass-through taxation and operational flexibility. Lovie can help you evaluate your funding roadmap to choose the optimal entity type.
+How does forming a company protect my personal assets from AI-generated content liabilities?
Forming an LLC or C-Corp creates a corporate veil that separates your personal assets from your business liabilities. In the AI space, this is critical because startups face unique legal risks, including copyright infringement claims regarding training data, algorithmic bias disputes, and data privacy violations. Operating through a formal business entity ensures that if your AI model generates contested output, your personal savings and property remain protected.
+Can international founders form a US company for their AI startup?
Yes, non-US residents can fully own and operate a US-based LLC or Delaware C-Corp without needing a US visa or citizenship. Forming a US entity allows international founders to access the US market, open a US business bank account, and process payments through Stripe for their SaaS products.
+Do I need to register in California if my Delaware C-Corp operates remotely?
If your AI startup is formed in Delaware but you or your co-founders operate the business from California, you must file for 'foreign qualification' to do business in California. This requires registering with the California Secretary of State and paying the annual $800 franchise tax, regardless of whether you have a physical office or revenue. Failing to foreign qualify can result in penalties and the inability to enforce contracts in state courts.
+What is the Corporate Transparency Act, and how does it affect AI companies?
The Corporate Transparency Act (CTA) is a federal law requiring most US businesses, including AI startups, to report their Beneficial Ownership Information (BOI) to FinCEN. You must disclose details about anyone who owns at least 25% of the company or exercises substantial control over its operations. Newly formed companies must file this report within 90 days of formation to avoid severe daily penalties.
