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Ask HN: The less than legal startup, a boot-strapper's advantage
The thought came to be when discussing a new business model. The realization that a boot-strapper can be non-compliment with things like employment regulation, business licenses, etc, in order to demonstrate a business concept. Then fix the problems only if the business model is viable. One caveat is this will only work if one can limit personal liability.
For clarification, I am not talking about fraud or ripping people off, however the avoidance of some red tape until a model is actually proven ($$ and people). If the model fails, the business gets slapped with a few fines and fees and dies. A existing business or one with large financial investment does not have this ability, therefore it is a boot-strapper's advantage.
I would like to open a discussion on this idea.
- bilbo0s 17y agoYou're being fairly vague so let me put some hypothetical context in here. Let's say you made a video game... If all you are talking about is paying taxes under your own name until you find out whether or not a significant number of people are going to buy your game, fine. Anything more than that however would be less than wise. EDIT: Let me amend that... I should say that I was assuming the content of the game was non controversial. If your content is controversial, ALWAYS start the LLC, it is not that hard usually.
- bertm 17y agoThe idea was meant to fairly generic. Your example would be closer to what I mean if your business model had some sort of regulation involved i.e. time or money you had to spend getting the greenlight from government. An example idea was a one-click online employment agency. Employment in general is steeped with redtape.