Ask HN: My project died right after forming the company... • Hacker News Board

Re: Ask HN: My project died right after forming the company...

#21

Post by codeslush » Thu, Feb 10, 2011, 5:28 AM UTC

dlevine wrote: post #10

I meet a lot of first-time entrepreneurs who think that a company is some sort of magic thing that will give them credibility. In reality, it usually just costs you money in many cases. I've learned that the most important thing is building a product, and that the actual incorporation can be done later. You technically don't even need a real corporation until much later in the process than you would expect (I have fr…

IAANAL (I also am not a lawyer) but I don't think you can just "let it die" --> in fact, I think that will get you in a lot of trouble. You either need to keep it alive, or you need to kill it. A corporation is its own entity and you can't just ignore it because it will come back and haunt you. So please...don't just ignore it - kill it properly.

Re: Ask HN: My project died right after forming the company...

#22

Post by ceslami » Thu, Feb 10, 2011, 6:37 AM UTC

metachris wrote: post #16

ceslami wrote: post #7

Earlier quoted context omitted.

Why do you say that? I think most people on HN would agree that before incorporating, its smart to build a product and prove its viability/desirability. Except, of course, in capital intensive situations where funding (and thus incorporation) comes first.

Actually it's an often iterated advice/opinion here on HN to start with a company and follow up with products. Setup a website, start blogging, build a social network, all this helps give a product launch traction. That is why I posted this in a sincere, although perhaps too short comment. The author should not be disillusioned but keep pushing forward, ideas are plentiful and worth very little without proper executi…

In this scenario, "company" is used to refer to an incorporated entity (C-Corp, S-Corp, LLC, etc). That is to say: You should not register a corporation with the government until you are sure that it has potential for growth.

You seem to be using the word "company" to referring to something different.

Re: Ask HN: My project died right after forming the company...

#23

Post by dazzawazza » Thu, Feb 10, 2011, 9:27 AM UTC

krisrak wrote: post #18

dlevine wrote: post #10

I meet a lot of first-time entrepreneurs who think that a company is some sort of magic thing that will give them credibility. In reality, it usually just costs you money in many cases. I've learned that the most important thing is building a product, and that the actual incorporation can be done later. You technically don't even need a real corporation until much later in the process than you would expect (I have fr…

Thats right, you should always start working on it as a side-project and launch it, see if it gets any user base or if you can make money by monetizing. Forming a company can be done when you have VC's interested or you are making a lot of money. Until then you can just collect the money from sales or monetization and file it as 1099-MISC tax return. No company is required initially especially for web based startup

I agree but I'd just like to add the caveat that a company offers you some legal protection which depending on your market you may need or may be desirable.

Of course being a director/owner also brings it's own responsibilities which you must respect.

Re: Ask HN: My project died right after forming the company...

#24

Post by x0ner » Thu, Feb 10, 2011, 5:52 PM UTC

dlevine wrote: post #10

I meet a lot of first-time entrepreneurs who think that a company is some sort of magic thing that will give them credibility. In reality, it usually just costs you money in many cases. I've learned that the most important thing is building a product, and that the actual incorporation can be done later. You technically don't even need a real corporation until much later in the process than you would expect (I have fr…

"You technically don't even need a real corporation until much later in the process than you would expect (I have friends who run successful businesses as sole proprietorships)."

While this is true, it may be worth having an LLC or something more than a sole proprietorship given how people love to sue for any reason they can find.