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My question is - do I now need to file for a business name, Corporation vs LLC, or any legal things? This is my first time releasing a service/product and have no idea where to start, can any one assist me?
Don't bother forming a corporation, renting office space, or even making business cards when you don't have any customers or revenue.
It's perfectly acceptable, and the recommended approach, to simply operate as a Sole Proprietorship (no legal entity for the business, just self-employed income for you) until you have a REASON to form a corporation -- things like, to mitigate liability, to hire employees, to take on investors, etc.
As a sole proprietorship, you can still do business under a company name - this is called DBA, "doing business as". So if you go to get a business bank account, for example, you can open the account under the name "Firstname Lastname DBA MyCoolInternetCompany". You can also get an EIN or TPIN (employer ID number, taxpayer ID number) from the IRS without an official business entity.
Later on, once you have customers and revenue, you can then form an LLC for a few hundred bucks depending on which state you are in. You can do this first, of course, before actually starting your business and getting revenue/customers, and many people do -- but it's a common mistake for new entrepreneurs to focus on the fun/exciting stuff like making business cards etc instead of the boring but critical stuff like, you know, actually making money.
You're familiar with the term "premature optimization", right? Don't bother forming a corporation, renting office space, or even making business cards when you don't have any customers or revenue. It's perfectly acceptable, and the recommended approach, to simply operate as a Sole Proprietorship (no legal entity for the business, just self-employed income for you) until you have a REASON to form a corporation -- thin…
You're familiar with the term "premature optimization", right? Don't bother forming a corporation, renting office space, or even making business cards when you don't have any customers or revenue. It's perfectly acceptable, and the recommended approach, to simply operate as a Sole Proprietorship (no legal entity for the business, just self-employed income for you) until you have a REASON to form a corporation -- thin…
Thanks for the advice! When I file for DBA, lets say "cool internet company", is it best to get the business bank account, EIN, etc? Or can I just skip this step?
I didn't have a separate business bank account for, hmm, ~7 years. It is skippable.
Earlier quoted context omitted.
Thanks for the advice! When I file for DBA, lets say "cool internet company", is it best to get the business bank account, EIN, etc? Or can I just skip this step?
The chief reasons to get a business bank account are a) if you're going to invoice larger companies it will make getting payments rather easier (you appear to not be doing this) and b) it makes it marginally easier to segregate business and personal finances, which will simplify your tax compliance. I didn't have a separate business bank account for, hmm, ~7 years. It is skippable.
Thanks again for the advice
How to start a startup legal lecture http://startupclass.samaltman.com/courses/lec18/
How to file in delaware http://corp.delaware.gov/howtoform.shtml
Types of companies http://www.bizfilings.com/learn/compare-company-types.aspx
Limiting your liability by setting up an LLC, or other liability-limiting entity, is worth the peace of mind, at least it is for me.
Once you gain traction or see you have revenue growing then form an LLC . . . I would only form a corp if you take on investment or your accountant recommends it.