3 ms·

This is a really good article and I like the thinking, however there seems to be an underlying assumption that a company is like a disposable paper plate -- onc

This is a really good article and I like the thinking, however there seems to be an underlying assumption that a company is like a disposable paper plate -- once it's been used for something, it can't be cleaned and reused like a china plate. A company doesn't have to be horrendously expensive to set up, and can even be dirt cheap in some jurisdictions like the UK. If the idea fails, so long as the company isn't otherwise insolvent it can be reused or even kept dormant for the price of a decent lunch, ready for the next idea. The thing that bothers me about this pre-incorporation experimentation phase is liability. This advice would lead to a window of personal liability in the beginning for the founders. Although I'm not used to the same level of litigation risk American entrepreneurs face, incorporation in any jurisdiction can (in most cases) serve as a really cheap form of legal liability insurance. I also wonder (and this will be highly dependent on the jurisdiction) whether the founders will be liable for their pre-incorporation actions. For example, if they write software that infringes on someone's patent, would incorporating later ease their personal liability for the time before the business was incorporated and IP rights were transferred to the company?

StavrosK 14y ago
This is what I did, too. I registered an Ltd in the UK with an unrelated name (Stochastic Technologies) and it serves as an umbrella for my consulting, products and experiments. It's very easy to register, and all you need is a good accountant. Even if I had no products, the company would still be useful.
- kintamanimatt 14y ago
  You don't really even need an accountant. You can file it online at Companies House's website for something like £15 and minimally adjust a standard memorandum and articles of association. The record keeping is easy and all the processes for incorporating, running, and dissolving a company are very well explained by CH's guidance booklets. The UK, for all its faults, is one of the easiest and cheapest places in the world to incorporate, and all the other formalities combined are trivially trivial. The only qualm I have about incorporating in the UK revolves around how much personal data Companies House sells that subsequently gets splashed across the internet for all to see, free of charge. It's better than it used to be (directors' and secretaries' home addresses are now finally protected under the 2006 Act) but it's still a little too much unnecessary data that's made public.
  - StavrosK 14y ago
    Hmm, do you have any details as to the filing? My accountant helps me with advice and only costs about 100 pounds a year, but it would be nice to know how I can file by myself in case I need to...
    - kintamanimatt 14y ago
      Congratulations on your 29th birthday btw! ;-) Have a look at Companies House's website[1]. All their guidance is listed there, and they're very responsive both by phone and email. HMRC are also super helpful and have very comprehensive documentation on their website relating to personal and corporation tax. [1] http://www.companieshouse.gov.uk/ http://www.companieshouse.gov.uk/
      - StavrosK 14y ago
        Thanks, but how the hell did you know?! Thanks for the information, I'll have a look at the site and see what I can glean. The HMRC are indeed very helpful, I even have my own tax officer I can call. I'm beyond satisfied, especially when comparing the experience to the Greek one (ugh).
        kintamanimatt 14y ago
        All your personal details you filled out on form 10 become public record, including your date of birth, former names, etc. Before the 2006 Act, all former directorships and personal residential addresses were also part of the permanent record. Also, all amendments you make become part of public record too. If I really wanted, for a few pounds I could buy copies of your filings from Companies House! [1] [2] Search your own name and you'll see a lot of information show up about you and the two British companies you've been involved in. [1] http://wck2.companieshouse.gov.uk/d9905cee41fe8bc6bc1e30b72c33e8a6/compdetails http://wck2.companieshouse.gov.uk/d9905cee41fe8bc6bc1e30b72c... [2] http://wck2.companieshouse.gov.uk/daf03799bf17832767f99543e5a1aa2b/compdetails http://wck2.companieshouse.gov.uk/daf03799bf17832767f99543e5...

StavrosK 14y ago

This is what I did, too. I registered an Ltd in the UK with an unrelated name (Stochastic Technologies) and it serves as an umbrella for my consulting, products and experiments. It's very easy to register, and all you need is a good accountant. Even if I had no products, the company would still be useful.

kintamanimatt 14y ago
You don't really even need an accountant. You can file it online at Companies House's website for something like £15 and minimally adjust a standard memorandum and articles of association. The record keeping is easy and all the processes for incorporating, running, and dissolving a company are very well explained by CH's guidance booklets. The UK, for all its faults, is one of the easiest and cheapest places in the world to incorporate, and all the other formalities combined are trivially trivial. The only qualm I have about incorporating in the UK revolves around how much personal data Companies House sells that subsequently gets splashed across the internet for all to see, free of charge. It's better than it used to be (directors' and secretaries' home addresses are now finally protected under the 2006 Act) but it's still a little too much unnecessary data that's made public.
- StavrosK 14y ago
  Hmm, do you have any details as to the filing? My accountant helps me with advice and only costs about 100 pounds a year, but it would be nice to know how I can file by myself in case I need to...
  - kintamanimatt 14y ago
    Congratulations on your 29th birthday btw! ;-) Have a look at Companies House's website[1]. All their guidance is listed there, and they're very responsive both by phone and email. HMRC are also super helpful and have very comprehensive documentation on their website relating to personal and corporation tax. [1] http://www.companieshouse.gov.uk/ http://www.companieshouse.gov.uk/
    - StavrosK 14y ago
      Thanks, but how the hell did you know?! Thanks for the information, I'll have a look at the site and see what I can glean. The HMRC are indeed very helpful, I even have my own tax officer I can call. I'm beyond satisfied, especially when comparing the experience to the Greek one (ugh).
      - kintamanimatt 14y ago
        All your personal details you filled out on form 10 become public record, including your date of birth, former names, etc. Before the 2006 Act, all former directorships and personal residential addresses were also part of the permanent record. Also, all amendments you make become part of public record too. If I really wanted, for a few pounds I could buy copies of your filings from Companies House! [1] [2] Search your own name and you'll see a lot of information show up about you and the two British companies you've been involved in. [1] http://wck2.companieshouse.gov.uk/d9905cee41fe8bc6bc1e30b72c33e8a6/compdetails http://wck2.companieshouse.gov.uk/d9905cee41fe8bc6bc1e30b72c... [2] http://wck2.companieshouse.gov.uk/daf03799bf17832767f99543e5a1aa2b/compdetails http://wck2.companieshouse.gov.uk/daf03799bf17832767f99543e5...