Quote: (12-28-2015 02:56 PM)456 Wrote:
^^ For most cases, start executing on the idea ASAP without any of that.
Keep track of who you pay and who pays you, do not give out any equity, keep it under your name or use a simple DBA so you can receive money under a better name. Default as sole proprietor and take the Path Of Least Resistance, administrivally speaking.
Your hours are far better spent on honing the product, pitch, first few customers, and finding the right contractors / eventual employees / eventual partners. Don't "pre-cum" equity on people -- either pay them for their time or for IOU on revenue. What's the essence of your business? Nail the beginnings of that and the administrivia will come later.
Caveat Time
If the idea has high liability or touches more regulated areas (food, chem, manufacturing), then disregard my "fast track" advice. Though with food, I've seen people do a word-of-mouth hustle (i.e. delivering high end grilled cheese sandwiches out of an East Village apartment, getting hype, then going legit with a food truck -> restaurant -> chain).
Otherwise, wait until you start making some consistent revenue, and then shift everything into an appropriate entity and consult a lawyer and accountant.
Too many other caveats to list, just food for thought.
My personal bias: I hate losing steam on the admin side of things, giving me more time to start questioning the underlying premise. If the premise is good, just get that first close using duct tape if need be.
Much appreciated! In essence, you're saying
1) Just do the business
2) Accept payment personally, include it in personal income taxes. This method would prevent the possibilty of tax write offs, I'm assuming.
3) Once/if it starts making more than pocket change, consult an attorney/accountant about the next step
Sounds pretty reasonable to me. Thanks again