Can a C corp be digital?

These are great questions, and are going to be very specific to your corporation and how you want to run things. Generally, you can structure things however you want, but working with an Attorney on your bylaws will ensure an objective outsider is thinking through how conflicts can be resolved before they impact day-to-day business operations.

Texas Secretary of State has a ton of helpful resources, including what documents to be filed, what taxes to be paid, and others. With regards to applicable law or which regulators your business will be subject to, you may want to discuss the nature of your business with your preferred counsel. You should also look into the duties/responsibilities of owning or holding a certain position in your company. There are also post-obligations or tasks that the company has to undertake after being registered, like adopting your Bylaws and naming your officers/directors/c-level executives.

You form a corporation by filing articles of incorporation with the Secretary of State. Then you will need initial board resolutions to authorize various post-incorporation organizational matters, as well as bylaws. You will also need to issue stock to the founders. This is the kind of project I have handled for dozens of clients.

It would be impossible to give you a primer on all of the advantages and disadvantages, but here is a headnote version: C-Corp Pros: Ultimate flexibility with regards to ownership, control, power, etc through the issuance of one or more classes of shares. Cons: Double taxed. You will be taxes as a corporation and as an individual taking a salary from the corporation. S-Corp (this is just a C-Corp electing to be taxed under subchapter S of the IRS code): Pros: Tax advantage for owners (up to 100 people) from not double taxing. Cons: Less flexibility than C-Corp but more granular control than LLC. Depending on the situation, most companies starting out are better off starting an LLC, which has less formalities, and then converting to a S-Corp or C-Corp once they scale and can take advantage. C-Corp, S-Corp, and LLC all have the same level of liability protection if you follow the formalities for formation and maintenance. C-Corps have the most rigor and LLCs have the least. You can also consider LLP and other business structures based on co-owners or other factors that a lawyer can help you evaluate.

There are a number of possible exit strategies, including a sale to a third party, a sale to an employee stock ownership plan, and a sale to an employee-owned cooperative corporation. Each of those approaches could be effected through a single transaction, or through multiple installments, or you could maintain some ownership of the business indefinitely. Each appraoch comes with certain relative advantages and disadvantages. Please contact me if you would like to discuss your options in greater detail.