4 ms·
> it’s totally ok to stumble blindly through this stuff at first until you’re making significant dough. I would rephrase that as “don’t rush to create a new l
by jt2190 2y ago
> it’s totally ok to stumble blindly through this stuff at first until you’re making significant dough.
I would rephrase that as “don’t rush to create a new legal entity until there’s an event that forces you to.” Events such as:
- raising money from outside investors
- forming a partnership
- hiring an employee
- so profitable that the plaintiffs/lawyers are circling
Forming a new legal entity takes time and money and distracts from getting the business off the ground. If the business doesn’t get off the ground it’s time and money to close down the entity.
(Someone will respond to this by declaring that you need limited liability protection for your personal assets, which is a level of paranoia I don’t subscribe to mainly because your personal assets are already at risk even before you start a company. Sane people/customers aren’t hunting for lawsuits, they have lives to live and businesses to run.)