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Mistakes on Our Way to $88k in Revenue

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Re: Mistakes on Our Way to $88k in Revenue

#21

Post by justingreet »

zarro wrote: post #13

What about IP agreements? After reading "Venture Deals" you get the idea that if you to talk about your project and bounce ideas off of them during the development phase they could have implicit "rights" to IP. What do you have to have everyone you talk to about developments sign an IP agreement?

That's honestly something he haven't considered. We generally tend to believe that ideas aren't worth much on their own, so we're happy to talk about our company/experience with anyone.

At our size, the downsides to protecting most of our ideas are outweighed by the value we get from practicing our pitch.

Re: Mistakes on Our Way to $88k in Revenue

#22

Post by abuehrle »

srameshc wrote: post #7

3. Start your company as an LLC No matter what anyone tells you, don't start as a C-Corp, unless you are sure that VC is investing in your company right away. Even the cost of winding down a C-Corp is substantial.

One other reason to choose a C-corp over LLC is QSBS if plan to sell your company.

https://news.ycombinator.com/item?id=20429286

Re: Mistakes on Our Way to $88k in Revenue

#23

Post by benburleson »

ganeshkrishnan wrote: post #17
whsheet wrote: post #5

Click-bait. Imagine you made a way to make 88k a month and keeping growing, why tell anyone? Exactly: You tell once growth has stopped and you need a quick fix.

88k a month is absolutely nothing.

I'm happy to take your 88k/month "nothing" from you, that would be life-changing for me.

Re: Mistakes on Our Way to $88k in Revenue

#26

Post by ThrowMeAwayOkay »

I really liked #8. Don't Engineer Too Early.

If customers are asking for features, processes, (your time), etc...then don't give that to them. Sell that to them. They'll pay if they really want it.

If a restaurant owner is asked why a certain thing is not on their menu enough times, the smart ones will get that on their menu. Is that new menu item free? Hell no.

Re: Mistakes on Our Way to $88k in Revenue

#29

Post by dumbfoundded »

cannaceo wrote: post #20
dumbfoundded wrote: post #18

Earlier quoted context omitted.

Unless you're in the Cannabis industry and you don't want to worry about 280e

How does being a C Corp protect you against 280e?

Pass through tax liability.

Let's say you did your accounting wrong and your company owes a bunch of money. These accounting mistakes usually account for double digit percentages of revenue.

If you own an LLC, you get the benefit of only paying taxes once unlike a double taxed C-Corp. The cost is pass through tax liability. If your company owes taxes, the owners personally owe taxes.

Let's take a real world example that happened to someone I personally know. They owned a dispensary, made some money not too much, everything going ok. IRS comes and says 4 years ago you did your taxes wrong. On revenues of ~$2.5M, she owed $400K that she deducted incorrectly due to 280e. In a day, she almost had her life ruined. She's back and opened a couple more dispensaries. She managed to survive others didn't.

If you had created a C-Corp, the business goes bankrupt. IRS collects what it can. You go on your way.

https://investinganswers.com/dictionary/p/pass-through-entit...

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