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> now I will only register an LLC if I can make at least $20k/month That can be fairly risky depending on the type of business though, because an LLC gives you
by gucci-on-fleek 9mo ago
> now I will only register an LLC if I can make at least $20k/month
That can be fairly risky depending on the type of business though, because an LLC gives you liability protection. Your strategy is probably fine for a B2C SAAS software business since there isn't much potential for liability there, but it would be really risky for any sort of business that operates in the "physical" world.
- dzonga 9mo agoyeah -- this is all made on assumption you're running a b2b | b2c saas you know the ones were a customer pays you less than $1k a year
- direwolf20 9mo agoIn places like Germany it's set up so they don't want you to have liability protection, they'd rather you don't do things that create liability. Is it different in America?
- gucci-on-fleek 9mo agoIt's easy to avoid liability if you're selling a calculator app, but much harder if you're a plumber. Also, lawsuits tend to be more frequent and for higher values in the US than almost anywhere else in the world, so even relatively "safe" businesses are still somewhat risky. Wikipedia makes it sound like forming a German business is quite expensive and time consuming [0], so I can certainly see why you'd want to avoid incorporating if possible there. But in Canada, it only takes an hour and a few hundred dollars to incorporate (random example [1]), so it's usually worth the effort/cost unless the business is tiny. [0]: https://en.wikipedia.org/wiki/GmbH https://en.wikipedia.org/wiki/GmbH [1]: https://abregistry.ca/product/alberta-corporation-standard https://abregistry.ca/product/alberta-corporation-standard