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Do not run the side project in your own name but instead create a limited liability company and use that for your projects. Then your liability is limited to th
by PhilWright 10y ago
Do not run the side project in your own name but instead create a limited liability company and use that for your projects. Then your liability is limited to the money you put into the company. Otherwise you are operating under your own name and so all your own assets are at risk if you are sued.
- billconan 10y agoThis is a good advice! I did not know this. Thank you. when you say limited liability company, does it mean only LLC? or C-corp and S-corp are also good?
- brudgers 10y ago[I am not a lawyer] The primary reason to form a C-corp is to facilitate outside investment by a particular class of outside investors. That class of investors includes traditional venture capital. There are few situations where forming a C-corp would provide advantages over an LLC: both are closely held, but an LLC is more flexible in terms of structuring controlling interests and payouts. That's why they are more popular. My advice is to pay an attorney familiar with SAAS businesses for advice. Good luck.