Just curious, has anyone in California ever launch their startup without going through incorporate process (LLC or S Corp)?

what would be your risk besides getting sued on your personal asset (if there is a lawsuit)?

I am curious as I intend to incorporate, but the timing is not right since if LLC in CA today, you have to pay $800 tax for the year 2013 and the year 2014 starts on April 15, so if I incorporate today, effectively I have to pay $800 tax (no pro rated) for ~5 months of activity. These 5 months could be an evaluation if the startup works or not. And these 5 months will probably have negligible revenue (if at all) or even losses. CA law states that inactive or even losses LLC have to pay $800 tax.

I am considering going S Corp but for a single founder, S corp is not as straightforward because you have to create payroll. However S Corp has the first year tax free.

For someone who is bootstrapping, $800 to test the water seems steep. I am thinking I would take the 4 months risk (my site is a month away from getting launch) considering these 4 months would have low activity.

Any advise?

Thanks.