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YAGNI…without customers and forming an LLC can happen as contracts are being written…but if you think your first potential customer is likely to sue before ther
by brudgers 3y ago
YAGNI…without customers and forming an LLC can happen as contracts are being written…but if you think your first potential customer is likely to sue before there’s a contract, walk away and find a different first customer.
It seems like what Paul Graham called “playing house.” Forming an LLC feels like progress but it’s not.
http://www.paulgraham.com/before.html http://www.paulgraham.com/before.html
What I mean is as I have been thinking about my opinion today I think my opinion comes from a deeper intuition developed over the years.
The standard arguments for forming an LLC are not based on better meeting the needs of actual or potential customers.
Even worse I think is that the standard argument is based on assumptions that the relationship is adversarial, arms length, and short term.
Good customer relations are way more valuable than limited liability because problems tend to be worked out before lawyers get involved.
- ghaff 3y agoIt's not so much about the legal liability. But a lot of companies want to deal with other companies and you can deal with that by just making up a name, doing a DBA with your town or whatever for probably tens of dollars, or making an LLC for hundreds of dollars. It probably doesn't really matter for small-time stuff. It may also be worth spending a small amount of money in advance to put some structure in place. I agree that involving lawyers and thousands of dollars in advance a lot of the time is probably not worth it in many/most cases.
- brudgers 3y agospending a small amount of money in advance If you have cash in hand, you can form an LLC if one is needed. If an LLC is not needed, the cash in hand can be spent on something that is needed.