4 ms·

As someone who is currently going through setting up a company, a list of words I didn't read in that article include: incorporation, insurance, attorney, EIN.

As someone who is currently going through setting up a company, a list of words I didn't read in that article include: incorporation, insurance, attorney, EIN. I can assure you these costs alone are well above $156. I don't know of a single state that looks kindly on un-registered businesses. I'm about to spend my Friday night (and Saturday and Sunday) doing legal research so I don't have to pay my attorney to use the Googles. At some point anything beyond an idea will need to be backed by a legal entity, and that process is no joke.

mrrobbo 12y ago
Hi - appreciate you worrying about my legal situation. We used the $156 to get started and now have more then enough money and resources to follow any legal proceedings. You're also unaware that my company connectedpe already turns over a very nice revenue. This new startup is a new product to our lineup
adventured 12y ago
You don't have to form a corporation to start a business, and you don't need an attorney, EIN or insurance. Millions of businesses operate in the US as non-incorporated entities (eg sole proprietorships or partnerships).
- jabo 12y ago
  Many cities expect even sole proprietors to obtain business licenses from them.
  - toomuchtodo 12y ago
    Only if you work or have property in those cities.
    - jabo 12y ago
      Yes, of course. I should've been clearer.
- hrehhf 12y ago
  In addition, an LLC is incredibly easy with regard to paperwork and effort compared to a corporation, and gives the owner(s) limited liability as well as tax advantages (vs sole proprietorships or partnerships).
  - zrail 12y ago
    My LLC was one sheet of paper and $100 to the state, plus $25/year renewal. Some states charge considerably more (CA, for example) but I think most states are similarly easy.
icedchai 12y ago
For a one person business, you don't need any of that stuff. A sole-proprietorship is a legal business.
- lucaspiller 12y ago
  Depending on where you are based, but in a lot of cases yes. Insurance is all about reducing financial risk, if you are willing to take that on yourself (and your customers are ok with it) then you don't need insurance.
  - icedchai 12y ago
    I had to buy business insurance for my sole proprietorship once. It was mandated by a customer contract.
patio11 12y ago
A sole proprietorship exists as soon as you say it does in many jurisdictions. That's the most common kind of business entity in the US. In my case I had to file for a DBA, which was a three field form plus a trifling amount of money to my local newspaper's classified section. You can run a software business for many years before you need to formalize things, depending on what you're doing. I think I put off incorporation and insurance for about 7 years.

mrrobbo 12y ago

Hi - appreciate you worrying about my legal situation. We used the $156 to get started and now have more then enough money and resources to follow any legal proceedings. You're also unaware that my company connectedpe already turns over a very nice revenue. This new startup is a new product to our lineup

adventured 12y ago

You don't have to form a corporation to start a business, and you don't need an attorney, EIN or insurance. Millions of businesses operate in the US as non-incorporated entities (eg sole proprietorships or partnerships).

jabo 12y ago
Many cities expect even sole proprietors to obtain business licenses from them.
- toomuchtodo 12y ago
  Only if you work or have property in those cities.
  - jabo 12y ago
    Yes, of course. I should've been clearer.
hrehhf 12y ago
In addition, an LLC is incredibly easy with regard to paperwork and effort compared to a corporation, and gives the owner(s) limited liability as well as tax advantages (vs sole proprietorships or partnerships).
- zrail 12y ago
  My LLC was one sheet of paper and $100 to the state, plus $25/year renewal. Some states charge considerably more (CA, for example) but I think most states are similarly easy.

icedchai 12y ago

For a one person business, you don't need any of that stuff. A sole-proprietorship is a legal business.

lucaspiller 12y ago
Depending on where you are based, but in a lot of cases yes. Insurance is all about reducing financial risk, if you are willing to take that on yourself (and your customers are ok with it) then you don't need insurance.
- icedchai 12y ago
  I had to buy business insurance for my sole proprietorship once. It was mandated by a customer contract.

patio11 12y ago

A sole proprietorship exists as soon as you say it does in many jurisdictions. That's the most common kind of business entity in the US. In my case I had to file for a DBA, which was a three field form plus a trifling amount of money to my local newspaper's classified section. You can run a software business for many years before you need to formalize things, depending on what you're doing. I think I put off incorporation and insurance for about 7 years.