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$20K is a LOT of money. You can form an LLC for a hundred bucks, lease a server for another hundred, and do your own graphic design at the outset (or hire a st
by idlewords 15y ago
$20K is a LOT of money. You can form an LLC for a hundred bucks, lease a server for another hundred, and do your own graphic design at the outset (or hire a student for a couple of hundred).
To hire a sales guy, just use the money from all the sales that are taking up so much of your time you need to hire someone else to handle them. That comes a little bit later...
- Smirnoff 15y agoI wouldn't suggest creating an LLC. I think it's a standard practice to incorporate all Y-Comb companies.
- tptacek 15y ago* LLCs are corporations. * My understanding is all YC companies are C-corps. * That's because LLC's and S-Corps have limitations on shareholders and share classes. * The C.W. is that any major external investor is going to rip up your corp structure no matter what you do. * It's almost certainly not the case that YC would turn town a promising team because they were already an LLC. The principals just need to unanimously agree to convert. * You should get some kind of limited liability structure ASAP when you start, because until you do, most/all of your company obligations attach themselves to your credit, your assets, your mortgage, &c. * Of the limited liability structures available to you, LLCs are the fastest and cheapest. S-Corp and C-Corp only change taxation and equity structure.
- rorrr 15y ago$20K is NOT a lot of money. Consider that hiring anybody will cost you at least $40K/year. Hiring a senior level programmer will cost you $130-180K/year (counting his salary, benefits, taxes, accounting, work place).
- idlewords 15y agoAnd a large corporate HQ will cost you in the millions. You can pay for all of these things out of profits (or funding) once you've successfully built a product.