What is the best way for my co-founder and I to transfer the equity in the coproration we are using for our startup? It is a C Corp out of Delaware. We want the best tax benefits we can get.
Consult with a lawyer and an accountant. Nobody is going to be able to give you a competent answer since we know nothing about you and your partner, your current income and tax situations. We don't know where either of you reside and even pay taxes. We know nothing about your business. You should not be sharing that information on a forum anyway. If you want advice, go to a professional and get it.
Besides tax issues as browntwn mentioned, there are many legal issues, including both corporate law questions and state and federal securities issues. Get professional advice.