From that page: "Don't incorporate, though, if you can avoid it. We're less likely to accept groups that are already incorporated, because it costs so much more to deal with existing documents than to start from scratch."

How much negative effect does being incorporated have? Nature of our start-up required us to incorporate asap after going live. I'm a bit surprised it can be such a bad thing as it sounds from the YC site.

It's no dealbreaker by any means, especially if you are a c corp in DE. It's just been more difficult to do some of the "legal cleanup" necessary for YC to make its invetsment than if you start from scratch.

That's exactly what we are. Go Delaware:)

It's more work for the YCs because your paperwork isn't identical to all the unincorporated companies.

Still, having a functioning product is enough of a net plus to YC that I wouldn't worry about it.

Isn't it possible to just make a new corporation and put the old one on the shelf for a bit?