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You need to consult with an attorney who can analyze the specifics of your situation. Food for thought. Liability: As the assets appear to be owned by you in
by will_brown 12y ago
You need to consult with an attorney who can analyze the specifics of your situation.
Food for thought.
Liability: As the assets appear to be owned by you individually you could be personally liable for any liabilities of said websites/MVPs (usually liabilities of websites or MVPs will be non-existent, but certainly it depends on the nature of the website/service). Additionally, if you have personally liabilities in theory a judgment holder could collect against the websites/MVP's perhaps including foreclosing the asset(s).
LLC: It is my understanding it will be more difficult to raise funding as an LLC, most investors require a Delaware C-corp and the business structure.
Series LLC: If you are intent on the LLC structure, then discuss the idea of a Series LLC with the attorney. Consider this structure (series LLC) as a mother permitting the creation of "Series" underneath, so instead of an LLC/website or MVP as you suggest, you could have a single series LLC with a series/website or MVP, and if in compliance each series should have liability protection from the others. Only a few states offer the Series LLC and there is no uniform approach taken by the states, but you can find states where there is no legal filings (ie. no cost) to forming each series once you have organized the Series LLC at the state level, but other states do have filing requirements for each series.
- wuliwong 12y agoHey, thanks a lot for your response. I will definitely look into the C corp. I have been told that before but kinda forgot when I asked the question. :) Right now, my apps are basically free consumer stuff, so there probably is very little liability. That being said, there are some ideas in the backlog which would involve money and then I would think the possible liabilities would be much more risky. The series LLC is interesting, I've never heard of that. I'm ok with the risk/liability being shared across all of the different apps I make for the time being, so I am thinking the C-corp is probably the thing to look into as long as I can have some document that I can update and resubmit with a new website or app added to the assets. Thanks again!