Bootstrapper wants to incorp in Delaware on own to save $$.

#1

Post by sabredata » Mon, Jun 21, 2010, 9:58 PM UTC

Bootstrapping...lawyer wants 3500 to incorp me with the basics. I have incorporated many times but not in the SPECIFIC way it needs to be done for a statup seeking investment by FForF, angels, etc. I got the founder friendle docs: http://www.thefunded.com/funds/item/6085 from the funded. Im thinking about doing this myself to save ...oh about $3200. Any advice for? against?

Thanks,

Bootstrapping inChiTown

Re: Bootstrapper wants to incorp in Delaware on own to save $$.

#2

Post by jmount » Mon, Jun 21, 2010, 10:21 PM UTC

Buy a Nolo Press book on incorporating- $50 and done.

Re: Bootstrapper wants to incorp in Delaware on own to save $$.

#3

Post by EinhornIsFinkle » Tue, Jun 22, 2010, 1:07 AM UTC

Srsly, you should be able to pull it all off for well under $750 including fees, registered agent, etc.

Re: Bootstrapper wants to incorp in Delaware on own to save $$.

#4

Post by philiphodgen » Tue, Jun 22, 2010, 1:56 PM UTC

For extremely simple situations (one owner, or multiple owners who are all equal in what they own) a person can do the work. Nolo books are good. There are others.

The real question is "Do you need a corporation?" There are other entity types. This question has legal and tax implications.

Then the next real question - if three grand is real money (and in my world three grand buys a lot of food!) have you considered the time and financial cost of ownership of your corporation? For a one person corporation figure $3k per year minimum. I am such a corporation (in a figure of speech) and imagine getting a $4k bill for a tax return from your CPA. Anyway, you get the point. It ain't the cost of the obstetrician to deliver your baby. It is the care and feeding when you get home.

Finally. You are starting a business. If you are seeking outside investor or you plan to exit by selling out, don't do amateur hour stuff that will cause these outsiders to question your judgment.

Yes you can do it. Yes you can do it competently. It will never be cheap. Yes it is necessary to form a company if you are serious about doing business. Just do it right.

@philiphodgen