11–20 of 57 posts
Somewhere around the 100k revenue point. I don't recall the exact reason, it was getting more serious at that point, I guess. I wish I'd done it earlier, as certain loans (SBA) are only eligible if you're at least 2 years old. If you might pursue bank funding later for this, incorporate as soon as possible.
Somewhere around the 100k revenue point. I don't recall the exact reason, it was getting more serious at that point, I guess. I wish I'd done it earlier, as certain loans (SBA) are only eligible if you're at least 2 years old. If you might pursue bank funding later for this, incorporate as soon as possible.
On the flip side, what would the downsides be of incorporating early?
You may also have to submit paperwork to the government every year describing your business in some fashion. Failure to do so might land you in some hot water. Basically, almost every business is subject to at least some kind of regulation in most jurisdictions, even if it's just bare minimum.
I have one corporate entity that I use for both my "side projects" and for consulting work. Mostly did it to ensure limited liability. Also, if one of the projects goes big, it will make things easier later on. Also, if we're talking about iPhone apps and such, a corporate name looks more professional in the app store.
Started accepting sign-ups about 5 days ago. Have had 2 trial sign-ups, $0 revenue so far
Maybe I should advertise? :D
At a later time, when I was applying for a job at a big company, I was informed by HR there was a mistake on my resume. They said I had the wrong start date on my one man company! I assume they looked at the incorporation date and then thought I was fudging my resume.
Incorporation would mean a ton of paper work, more taxes (in Canada at least), more complications, and 3x the accountant's fees.
For what it's worth, my project nets 200k, is 3 year-old, and I have a degree in accounting and taxation.
I incorporated at the very beginning, after a few beers at 2am. Ignorant of the law, I thought it was necessary to form right away. If I was doing it again, I would still at least have an LLC or equivalent entity for liability protection and to "look official". It has also come in handy for consulting work.