In business law my professor said: "If I only teach you one thing let it be this: never ever, ever, do business as an unincorporated entity!" He went on for h

In business law my professor said: "If I only teach you one thing let it be this: never ever, ever, do business as an unincorporated entity!" He went on for hours to elaborate all the problems of unlimited liability and de facto partnerships--if anyone else is involved in the business you could be found to have unlimited liability for them. Just incorporate, it costs very little, some law firms will do if for free (I think Wilmer Hale is doing this) or you can do it yourself in very little time with several on-line services like Clerky. YC even has standard documents you can copy so that you're ready if you ever decide you want to run the VC race.